The Importance of Keeping a Trade Journal.

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xtremeforex
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The Importance of Keeping a Trade Journal.

Postby xtremeforex » Mon Nov 21, 2016 12:51 am

Hello everybody,

Back again.

Thought I'd drop some updates since my last post:

I usually do this, as a way to show the ongoing evolution of my trading, thinking process, strategy and sometimes mistakes learned through the process.

I keep a diary of my live trading actions, thoughts and psychology during trading.

It is important that you keep a trade journal that keeps track of.

1. Date
2. Trades Entered
3. Max Drawdowns experienced.
4. Your mood, mindset, sleep patterns
5. Things you have observed, things you should change or modify
etc.

* Basically, jot down notes during live trading, tracked with a date, so that you can refer back to it later.

You will be surprised at how much of the past you actually forget. Things you -think- you would remember - but you actually don't.

The diary may seem redundant at first, but when you take breaks, time off, start a new cycle, you will see how it pays off to look at your past experience.

For example: During times of stress, you could even see the quality and style of my writing visibly change. Or notes, such as "you need to go to sleep!"

It helps to look back to see how you felt and reacted during live trading. Things you observed, noticed more or became more -sensitive- to, that you normally would not have, say in demo-mode etc.

If you want to improve on your trading, you need to recollect on previous experiences if you expect to improve the future.

Otherwise, you are likely to not learn from the past and repeat the same experience and/or mistakes again, starting each live session as if you never traded before!

Try it. It will pay off and it is a great way to learn about yourself and your psychology - so that you can adapt your strategies around yourself, as opposed to adapting yourself around your strategies.

Remember, your diary does not have to be a scientific or meticulously organized. Just keep notes while in action.

Xtreme

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