As a trader, you’re keeping a trading journal because you believe it will help you with many things, one way or another. And it will be useful in case you feel lost in trading and you want to know how to get back on track.
However, it doesn’t really go automatically that way. If you haven’t written enough, or you forgot to write the most crucial details of your trading career, then maybe your trading journal wouldn’t be much help to you.
Therefore, it’s important to know Finance Brokerage Education which things to write down on the journal. What things, then? The quick answer is: EVERYTHING! And the long answers are what follow. Read on!
You and Your Motivations
When writing a trading journal, keep in mind that you have to be clear about your trading personality. This means that you cannot make it through the whole fiasco if you’re not even sure what you are as a trader.
Start off your trading journal by describing who you are as a trader, your trading personality, your goals, Forex Trading Guide and why you want to achieve them.
When describing yourself as a trader, you have to determine your risk tolerance and indicated some key features of your personality i.e. your strengths and weaknesses and the strategies you prefer to use. And when you’re writing your motivations and goals, make sure they are specific and realistic, not just a a vague idea of being rich via trading.
Your Views and Philosophy on the Market
You might that as a beginner, you don’t have any solid philosophy or view on the market yet. At this point, your whole perception of how the market works is limited only to the things you read and observe.
However, it doesn’t really mean that you cannot have some sort of a working hypothesis on the market. You need to write down the things that you consider as philosophical, even those that you got from other traders.
Try to stick to that philosophy you wrote, and see if it works well for you in the longer run. Take note of how you use such outlook and philosophy to make decisions. See how such decisions affect your overall views on the market.
Mistakes, Opportunities, and Observations
These rank among the most important details that you should write down. Take note of the trading mistakes that you have committed and see what brought you there and what made you decide for that mistake. Usually, if you record everything, you see how obvious the mistake was in the beginning.
The opportunities you grabbed and the opportunities you missed are also very important. Include them in your records and see which opportunities were good ones, and which ones were worth grabbing, and which are okay to miss.
Then, most importantly, fire up your analytic and critical side and write down the observations you have for the market. Write down your observations—everything you see and think about what you see—and see if you can come up with a clear, informative picture of how the market is currently doing.