Once in a while, people need to look back and reflect on their actions. But is it essential to do so? Because it helps a man to grow as a person by evaluating his past mistakes and pinpointing his strengths. And for this, the best tool is a journal where the life records of a person are noted. In trading too, a journal can be of huge help. But why? You will know that as you move forward.
In most of the cases, a trading journal is used by the traders to keep a detailed track of what they are doing and did in the past. When a person first joins the trading sector, he doesn’t have enough facility to be guided professionally. Well, it is one of the features of the trading business. Then, what helps him in his journey? Here comes the necessity of a trading journal. It acts as a personalised guideline for the traders and they get to learn from their previous trades. Isn’t that interesting?
However, many traders often fail to maintain a proper trading journal due to some maintenance error. That’s why, today, we will be discussing some of the maintenance ways to develop a reliable trading journal.
Choose the medium
One can mark down his records in forms of books or spreadsheet. Though the number of traders using books as a journal medium is not less, most of the traders are inclined to journaling in a spreadsheet. A spreadsheet is an easy option for the traders to input all their records and since all the calculations can be done automatically, the spreadsheet is the most popular medium for them. Another good side is that the automatic calculation in a spreadsheet helps to prevent mistakes. But, it is completely up to you to decide what type of medium you want to choose as your journaling medium. View website of Saxo and see the features of SaxoTrader. By using an advanced platform, you can easily keep track the trading performance like the experts in the United Kingdom.
Keep a record of your details
While journaling, you shouldn’t focus on the big picture. You need to make sure that you are inputting all the small details that took place while you were trading because this small information plays an important role behind winning or losing trade. again, information like money management, risk management, market analysis and economic condition; all this information should make their place in your journal. Also, keep in mind to input anything that you observe or learn while reading the charts. These will help you to come up with better strategies and techniques.
Update your journal regularly
Updating your journal is a must if you have one. If you don’t update regularly, you might forget what happened exactly at that time which will result in distortion of some information. Even if you don’t trade on regular basis, putting down your thoughts and market observations will help you to have a clear sense of what the market may look like in the future. For example, if you have a clear record of historic volatility, you can speculate about the implied volatility. Again, you can also identify the reasons why your trade failed. So, a day-to-day journal update is very important to have an insight of the trading market.
Now recording a journal is not enough. You also need to assess it properly. A journal is worthless when it is not evaluated properly. If you have maintained your journal properly then your journal should contain all the detailed information of your trade. Then when you look back, you will find out the loopholes in your trades and solutions to those problems. Not only that, but you can also know the key points behind winning a trade. that way, you can identify your winning strategies while starting a new trade. Moreover, this assessment helps a trader to come up with better decisions for his trade by avoiding the mistakes he had made previously.
It is undoubtedly true that a trading journal requires much patience. But if you are consistent enough, then it won’t be a big deal for you to pull off a good trading journal.