Understanding the Benefits of Keeping a Trading Journal

By: Boris_Dzhingarov

There are many ways you can achieve success in the financial markets. One of them is learning from every trade you make. Whether you are trading stocks or foreign currency pairs, keeping track of the positions you open and how they perform is important.

A trading journal is what you need and keeping a detailed one is easier than you think. More importantly, there are many benefits you can gain from keeping a trading journal from the start of your adventure in the financial markets.

Improving Your Trades

Here’s a secret I learned a long time ago: what you cannot track, you cannot improve. Well, you cannot improve on the trades you don’t track. The more you know about the positions you open, the better you will be at refining your trading strategies.

Simply reviewing those open positions in your mind isn’t enough, hence the need for a trading journal. Write down details about each position and gather as many insights as you can. You can even include details about how you feel when opening and closing the positions, as a way to control your emotions better.

Gaining Support

There are so many other traders to learn from and the internet is the perfect place to meet them. Aside from online trading forums and chatrooms, you can learn from the best traders by starting a blog and posting your trading journal online.

You can learn about how to start a blog from this tutorial. Once your trading blog is up and running, you can start posting your trading journal there. It will not be long before other traders start commenting on the positions you make, giving you more information to learn from.

Better Trading Decisions

Let’s not forget that you can also use the trading journal to monitor potential trades as they develop. If you are interested in adding USD/JPY to your forex trading portfolio, for instance, you can monitor the pair’s movement as you document other trades you make.

The data you collect will help you determine the right positions to make in the future. You are basically creating your own long-term analysis rather than relying on external sources. In turn, you will be able to enter the market with more confidence.

Achieving Your Objectives

That brings us to the next benefit of keeping a trading journal, which is having that ability to know exactly what you are doing with complete confidence. We all know how important it is to have confidence when working as a trader in the financial markets.

With a detailed journal, it is also much easier to keep track of your goals. You can always tell if you have achieved your objectives, and how you were able to achieve them. The more details you add to the trading journal, the better (and more confident) you will feel about the decisions you make, and the more trading objectives you will be able to achieve as well.

With this long list of benefits, not starting a trading journal right now is clearly a mistake. Start your own trading blog, write details about your trades, and begin enjoying these benefits in no time.

By Boris Dzhingarov

© 2018 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.