Create your own trading journal – Lesson 5

Every operator must have a trading journal in which he can see reflected his operational day by day, is based on maintaining a comprehensive control over the goals to get and the means that this entails. It is not enough to do mental calculations or point one day if another not.

If we want to improve we have to see on your trading journal what we have done this week, this month and the last quarter.

It should start with the most basic tasks:

  • Select the goals to achieve during the week or month
  • Establish rules about our trading
  • Write and focus on good entries
  • Make it easy to fill in, Excel is perfect
  • Comprehensible, objective information without terms such as “I miss this type of entry”
  • Weight info, pips position, volume, result, rules etc …
  • Realism, the worst thing you can do is fool yourself

The first step to have survival assured is to write everything you must do to operate. Consequently, the same must be done with the most common. You cannot control yourself if you make mistakes that you do not have monitored by what will have to be put in writing each and every one of the actions carried out, both good as bad. The rules have to answer: how do you want to determine the size of the positions, type of entry, type of exit, stops and Safety distances, set the output, average or unload position weight increase or reduce positions.

You will no longer see your account only if you have earned money or if you have lost it but how he has lost it and why.

It is essential that we know why we lose since at the moment when we know in what we fail we can focus on avoiding that kind of action, although it costs us time the first step is to identify the problem. At the same time when we make good entries we must write down which ones have been the steps to perform the operation and try to repeat them as many times as possible. When an operator has already experience he will know that in his good times he must influence and according to its rules perform the maximum of operations based on a pattern positive and market circumstances.

For the same reason when a trader gets involved with an idea or creates something that does not will happen and continues to do the same, you will know at a given moment that you should take a breather to be objective again.

The simplest way is to start writing a trading journal from the first day. Check when you are complying with the rules and when it does not and establishing realistic goals for the day. It is not only closing in positive but knowing why it has done it.

Do not miss our Learning Forex: Lesson 4

Once an operation is completed we must analyse the following aspects each and every time;

  • Analysis of the success or failure of the operation based on our standards of operative. Of course, it must be a technique defined from the beginning to end. We must analyse our vision what the indicators say if the we use and the price action.
  • Macroeconomic analysis if we use it. We will enter more forward in this matter because it is common to a part of the traders only.
  • Result of the operation seeing how it fits into your monetary management. If it was a big loss or a big gain, what percentage on my objective has resulted.
  • Sensations before the operation, while and after. It would be enough if write what has been the sensations that ran through your veins in time that this operation has lasted.

Many people wonder how long this type of exercise should be done to be able to approach professionalism, well an average would be 3 months. There are people who needs much more time to bypass their own standards and not determine the negative patterns.

There are others who with a single month are already prepared to control and measure all their activity in the market, not just the monetary result.

The basic purpose of the trading journal is to evade the patterns negatives that made us suffer and increase and improve everything that we do well the only thing that is needed is perseverance, nobility and some insurmountable desire to be profitable in the long term.

Most people who come to make a serious and complete trading journal are those who are trying not only to be profitable in the markets but dedicate to this full time. The road is long, it is not easy, it is hard and many Sometimes it will make us want to leave it, but that is exactly what we do not have to do Leave.

If things are done well with knowledge this may be the most interesting world I have ever met.

Forex managed accountsCreate your own trading journal – Lesson 5

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