Why Do You Need a Trading Journal? πŸ“

OANDA:XAUUSD   Gold Spot / U.S. Dollar

Hey traders,

πŸ“– Trading Journal is a crucial element in your trading education.
Even though the majority tends to neglect it, in fact, it is considered to be the essential part of a daily routine of a professional trader.

In this post, we will discuss why you should keep a trading journal & how it enhances your trading performance.

Let's start with the obvious:
✍️ Trading journal is applied for recording your trading positions:
winning and losing ones.
With that, you can monitor your current performance, identify the mistakes that were made and examine your decisions.

❌ Analyzing the errors you learn your weaknesses & the situations when it is preferable not to trade. You adjust your trading strategy accordingly in order to avoid similar mistakes in future.

πŸ’ͺ Examining the winning trades you learn about your strengths.
You identify the trading instruments, the trading setups where your strategy reaches the highest accuracy.

βš–οΈ Working with the numbers you can measure your investing exposure and calculate your account drawdowns. You can analyze your losing streaks & your long-term/mid-term/short-term account statistics.

πŸ“ˆ Analyzing the figures you can measure your progress over time by comparing your current results with the old ones.

😑 Keeping the record of your emotions, you can measure & quantify the psychological element of your trading. You may calculate the percentage of emotional decisions being made and their effect.

🌟 Consistent journaling makes you disciplined. It teaches you to strictly follow the rules of your trading plan & constantly learn from your mistakes in order to hasten the path towards a more disciplined and profitable trading career.

A trading journal should be simple and tailored to your specific trading style and the goals you would like to achieve.
I hope that my words will inspire you to keep a trading journal!

Do you have the one already?

❀️Please, support this idea with like and comment!❀️
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