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Keeping a journal will help you understand why
your are making trades and what to expect during the stock trade. You
can write down what stocks like to gap after news. What stocks sell
off after news releases this will give you a winners edge in the
stocks markets. You need to write down support and resistance levels
especially in the forex markets. What news moves certain currencies
and how it changes the way pairs are trading. Make sure to keep a plan
on percentages of gains and losses. how far to set your stop losses
and take profits and stick you your plan when trading. You can review
your trading journal and make adjustments as needed.
Write down why the trade was a winner or a loser. Did some market news
that came out and caused the market to act irrationally? Did you
follow your forex trading plan? Did you stay focused through out the
trade? You should update your trading plan every month or so depending
on how active you are at trading. Try and write down how you feel
after you make a trade this will keep emotions out of the actual
trade. This will help you discover your strengths and weaknesses so
you know where to focus your attention. This is why it is so important
to keep trading records so you can learn from your trades this will
increase your chances of making money on a trade. You want to build on
our success and stay away from trades in which you have not followed
your plan.
Weekly points
Number of points for the day or week
Return on investment did you win or lose
Percentage of profit for the week
The amount of commissions
There are numerous columns you can create to gain important
information about you and your trading. The key is to document every
item that affects you while trading. Once you have collected this data
on a regular basis, you will start to see patterns in your trading
that are either helpful or need your attention to correct.
When you start a Trading Journal you will ask yourself how you ever
got along without it in the past. This may seem like a lot of extra
work but remember, your competition most likely is trading out of
boredom thinking that the trades are going to give them something. You
should know that whatever you take from the markets is from hard work
over the other traders. Remember to set your stop losses and stick
with them it is far better to stop out then let the trade lose more
money thinking that the trade will turn around. |
