If you love writing on your diary then you will surely enjoy trading. You will also get then chance to keep a diary when you trade. Yes, it may sound boring or corny but with a trading journal, you can be one step higher on your trading goals. You may think that there is nothing worth writing about it, but it is actually a very useful process. Why should you write and what should you write about in your trading journal? Here are some reasons why and how you should start writing a trading diary now.
Keeping track of Wins and Losses – Say for example you have lost a trade, and you become so angry and miserable. You will most likely behave in a very common manner. You will probably jump from trade to another so that you can immediately makeup for your losses. And then you will blame your losses on being unlucky or bad luck and then get’s very pissed and so something strange. Another example would be the opposite – winning. You have delightfully succeeded, and you behave in a typical manner. You believe that you are invincible, and you think that you had the best strategy, and you feel buying everyone a drink. You might also feel that you will trade more. These are really awful examples, but this will actually happen to you and if you are smart enough to notice – none of these behaviors are admirable in the trading world. Why is this so?.Simply because there are lessons that you have to learn in every trade you have.
It is hard to achieve a useful experience when keep ignoring results and if you do not assess and analyze these results. This is when the need for keeping a diary comes in the picture. One of the best ways to organize and enhance your memory is by keeping a diary or journal. When you come across similar trade opportunities, you can act in a methodical and concise manner. You can do away with similar mistakes, and you can remember the right decisions that you have made in the past. Thus, your anger and celebration can hold because you need to jot down your trades while you still have a fresh memory. By using a journal, you can identify your strengths and weaknesses.
Keeping a trading diary is pretty easy. It’s just like keeping a diary when you were a kid. You need to have a safe place for your diary. No, it’s not on a notebook were you need a pen and paper. Times have changed and letting anyone know about what you went through with your trades is ideal. It is best to have a public journal so that you can share your ideas with others, and you can have their ideas as well. There are many online trading forums that you can go to such as Communitraders. Here, you can easily have your own thread. You can make use of this thread as your own trading journal.
Trading implies that you have deal with charts, it is also ideal that you put pictures on your journal. With detailed pictures, you don’t have to write more and explain more. Chart screenshots are highly recommendable.
Moreover, if you choose to write a journal the traditional way, you can always keep a notebook where you can put your notes and experiences. It’s always nice to read and re-read your notes before going to bed. You can make your journal as your trading novel.And here you are. They Why and the How in writing a diary for your trading experiences. The more organized and detailed your diary is, the more convenient it is for you to follow and learn from.