The Forex market can make your life better. Just by having a real trading account, you can start participating in the trading business and start making some big profits. For that, you must have strong analytical skills. Trading emotions or gut feelings is not going to help. Sadly, the new traders become too much emotion after losing a few trades and lose a big portion of their investment. This is where the advanced traders in the United Kingdom are one step ahead. They always use a smart trading journal so that they can keep track of their progress. Most importantly, it helps them to trade the market profitably.
So, what are the key factors that we must include in our trading journal? Go through this article very carefully and you will know what to include in your trading journal.
Analysis of the market sentiment
Traders often think that by using the entry and exit point in their trading journal they can assess their past trade. Things are not as easy as it seems. Your trading journal needs to have a dedicated section that will keep the records of the market sentiment for certain trade setups. For that, you must learn to analyze the sentiment of the market. Though it’s a very tough task and requires experience, you can easily develop this skill in less than a year.
When you start learning about the market sentiment, use the demo account so that you don’t have to deal with too many losing orders. Focus on the long term market dynamics and try to understand the market sentiment.
Exit and entry point
This is the most important thing you should include in your trading journal. If you visit this professional brokerage site, you will realize the importance of precision in your trades. Most of the time, the naive traders are reluctant in placing the exact price of entry and exit. But just having the entry and exit price is not enough. You need to have a comment section in which you write down the details for which you have opened the trade. When you close the trade, update the comments section and write down the cause for closing the trades. This comment section of your trading journal will be a very useful segment while assessing your past trade data.
Being a human being it’s not possible to monitor the price chart 24×5. Even if you manage to install a price alter indicator, at times you will miss some really good trades. Include the missed opportunities in your trading journal and see if the market really goes in your favor. This gives you a unique chance to assess your trading strategy. Though this might not seem useful to the new traders, it is one of the most unique ways to develop your skills. If you incorporate these factors in your trading journal you can easily improve your trading skills to a great extent.
Your trading journal must have the features so that you can analyze your performance status. Most of the time, the traditional journal doesn’t have this feature. But if you don’t include this feature, it will be really hard to assess your performance. Without assessing your trading performance, it will be really tough to make some big profit from this market. It allows retail traders to find the mistakes in their trading systems. Once you learn to find the mistakes using your trading journal, you can easily find improve your trading performance by bringing some small changes to your existing strategy.
By now you know the importance of trading journals. The trading journal keeps you on track and allows you to trade the market with discipline. Never break discipline at trading as it can cost your trading capital. Be a safe player in this market so that you don’t have to lose a big sum of money.