How to manage Trading Journal? Hello traders, Today we are going to discuss the importance of Trading Journal, an important piece of information to meet the objectives in the forex trading by analysis of your own trading performance. The main objective of this article to help you to develop “self-discipline” from the perspective of managing forex trades as per your plans. It would not be wrong if I say that trading journal is like a record of what you're trying to accomplish in trading and of course measuring it if you're on or off track. It may be your targets, entry/exit time, dates, risk- reward ratio, profits and lot-size or how/why are you managing and executing your trades. It actually helps you to keep a track of your trading performance which tells you at which point you are progressing or lacking. Just like a person on dieting manages his/her diet chart and manages a record of how much calories he/she has taken or how much work is to be done today, similarly a trading journal keeps a track of the trades. Does it sound that maintaining a trading journal will take more efforts? Well, it is not so! A smart trader always maintains a trading plan in which he explains that strategy that he is going to implement as well as risk per trade. But the problem starts when emotion takes part in the trading decisions, it happens as we are human beings so it’s very natural to us. Ultimately what happens is, heat of trading melts your trading plan and turns it into the most dangerous thing of what we call gambling! A trading plan that has been burnt by the stroke of the emotional impulses, is no longer worth! To protect the traders what we have is “Trading Journal” which provides an ease of maintaining your trades to make them stick to the trading plan at any cost! This trading journal will include all the details of the trading strategy like the investment, the outcome of each trade, info about the trading signals you are applying, the profits or losses etc. In the end by going through the journal, you will know that why were you lagging behind, and what's really needed to make an improvement and performing better than before. Where had you deviated from your trading plan? Where were you wrong? Learn by yourself! Analyze wisely with the Trading journal! Now it is the time of revealing the importance of Trading Journal and how easy it is for you to go with it. Have a look! Open Microsoft excel sheet. Column A: Enter Entry date
Column B: Mention currency pair you intended to trade Column C: Specify the price on which you have entered into market for buying/selling. Column D: Specify stop point Column E: Mention Target price Column F: Possible risk Column G: Possible reward Column H: Mention position size or lots Column I: Enter Exit price Column j: Enter how many Pips you lost/gain on each trade Column G: Total loss/profits you have made on the trades Column H: Expected risk/reward ratio Column I: Actual risk/reward ratio Column J: Enter exit date Column K: Final Set up Make the entries as listed above or you can design the layout with your own, but it should contain each and every aspect of trading as per your action and then enjoy a planned trading that leads to profitable trading. Trading journal is a tangible piece of information that is needed for an individual to become a disciplined professional trader. By documenting every action and outcome of actions you would know its significance, which ultimately makes you understand the value of risk, reward and money management. Happy Trading!