Amongst all the digital frenzy of the 24/5, globally interconnected forex market, it’s easy to overlook the value of taking it back to basics with a pen and paper. But the fact of the matter is, keeping a trading journal is one of our top forex trading tips for beginners and veterans alike – and today, we’re going to show you why!
As the most liquid and volatile trading market in the world, things can quickly get pretty hectic when learning forex trading. As such, it’s common for stress levels to be high. Look to combat this by keeping a trading journal, enabling you to stay on top of everything through collecting all the necessary information in one efficient and convenient place.
From important dates on the forex calendar to the status of your open trades, keeping thorough and comprehensive records in a trading journal will avoid you becoming inundated with information, enabling you to remain logical and reasoned in your trading strategy and wider market decisions. What’s more, having all the important facts, figures and data to hand will ensure you’re able to stay reactive to sudden market changes – a skill vital to forex success.
Review your strategy
Primarily, your trading journal will serve as a record of your trading history. As a result, keeping such records enables you to review your past trades, evaluating the successes and failures to better inform your strategy moving forward.
As a rule of thumb, you should be documenting the following in your trading journal:
- Entry and exit price
- Entry and exit day
- Profits and losses
- Strategy used
The best way to learn forex trading is to obtain a detailed comprehension of what works for you. Being able to study your trades in a clear and simple way will certainly help you here, better equipping you to deal with both successes and failures in the future.
Learn, learn, learn
If it’s not already clear, the most important reason to keep a trading journal is the great learning opportunities it provides.
As previously mentioned, reviewing your trading history enables you to obtain a better understanding of the successes and failures of a strategy. By learning from your own mistakes, you’re sure to understand your mistakes a lot more clearly, enabling you to better inform your future strategy to avoid making the same mistake twice. No matter how long you’ve been trading, there’s always something to learn – and arguably there is no better learning resource than your own trading experiences.
The benefits of keeping a trading journal really speak for themselves – it’s easy to see why this is one of our top forex trading tips! Ensure you have all the fundamental knowledge to properly utilise yours by signing up to one of our free, expert-led seminars here!