Why do you need to maintain a trading journal

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  • #1847
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    Is it important to have a unique trading journal? If you have the trading journal it will be useful because will know the mistakes and you will prevail from committing them again. If you consider the traders in the United Kingdom they have succeeded in trading because they have the trading journal. If you maintain a trading journal you will be able to succeed as you will have the track records of the losses and profits. You should bear in mind to maintain the successful trading journal. Most of the naïve traders never focus on maintaining the trading journal so they lose easily.  If you consider the percentage of traders who are failing in the Forex market it can be the ones who don’t maintain the trading journal. If you want to succeed in trading, maintaining a trading journal can be the main part. You should have a trading journal and trading plan to succeed so make sure to follow these rules. Let us read further.

    Every successful trader in the Forex market always maintains a paper-based trading journal. They know very well that without having a trading journal it will become impossible for them to understand about their trading mistake. On the contrary, the novice traders are always placing random trades and they don’t have any type of track record for their trading history. They are always biased with the profit factor in the Forex market. As a new trader, you need to understand that you will make tons of mistakes in the early part of your trading career. But mistakes are always appreciated as long as you learn from it. If you take too much risk in any single trade then it doesn’t give you the guarantee that you will become a Forex millionaire. You need to think this profession as your business and only then you will be able to secure your financial freedom.

    The complete details

    In trading, it is essential for you to know the background and history of trade, without knowing history you cannot go ahead in trading. In this case, journal comes into play it will provide the history and current state of your trade. In fact, it will as a personal diary, sometimes you may forget the date which gave you the highest percentage in trading then you can glance to the journal and find it. You can also check the best time frame and currency pairs which helped you in trading and can use it for another trading. If you keep tracks you will be able to maintain the trading account successfully. The traders in the United Kingdom have the profitable forex trading account UK because they have the track records. You should also make sure to focus on this factor.

    The planning tool

    Having a record of your trading is not enough it should offer you the methods to invest in the market.  You should be able to control the losses you may face in trading. It should also provide information regarding the risks you will have to experience, and the profits you will gain for the trade should also be included. This is like practicing and teaching you before entering the trading market. The best tool to avoid risks in trading is through the trading journal.

    To ease the methodology

    Let us see for the next fact which should be included in the journal. This will help to prepare the trading in a methodical manner. This will also assist in building up a system in a huge market, time frames and the placing of stop loss. Whatever you do in life it should have a method in that point of view it is also applicable in trading especially in this competitive Forex market. You should know to handle the losses and profits accurately and methodically, for this you need to implement a journal which contains all the above important factors.

    • 443

    I think it helps a lot with allowing us to see mistakes we make and work towards correction. I work with FreshForex, where they provide me this kind of stuff on mail as their daily report. So this is very much enough for me. I also love their Educational section which itself guides us towards the right direction.

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