There is an uncomplicated and accessible way for everyone to trade consciously and avoid big losses – this is keeping a trading journal. However, many traders, both recently and experienced traders, ignore this tool. MINE Cryptocorporation analyst Mark Sorokin shared his experience with the trader’s trade journal.
At the beginning of my career, I, like most of the people who came to trading for big money, did not use any specific systems and, moreover, did not keep statistics on their trades. I didn’t record either, although it later turned out that it was the trading magazine that helped me dramatically improve the results.
Beginners and experienced professionals do not want to analyze their activities. It seems to every trader that it is he who is the lucky one to whom luck always smiles and who will definitely come out as a plus. Of course, he does not need a trade journal.
Many traders do not systematize their work. Trade is conducted at random, there is nothing to analyze. If we compare the deals made at random, no patterns in decision-making will be revealed. Fixing this data on paper or electronic media is meaningless.
However, the use of a trading journal helps to find weaknesses in the trading techniques and psychology of the trader himself, and also facilitates the development of a model that allows you to avoid deposit “draining”. Here are a number of actions that directly affect the outcome of trading.
Keeping a trading journal will allow the trader to take a look at his work from a new perspective. The main indicator of a trader is the ability to collect points and it is the trading journal that will indicate problem areas and the results of work – a steady increase, marking time, a gradual or sharp departure to minus.
Our brain always seeks to invent something that does not exist. In order not to invent something that really is not, you need to understand the value of keeping a trading journal.
A mandatory fixation of trading results is required to accurately assess the correctness of their actions, preferably by items. Trading magazine will clearly demonstrate how many points a trader has collected or lost during the week.
The biggest nonsense here is to do the same and hope for a different result. This expression, I think, is known to many, but for some reason it is the traders who follow ready-made patterns and usually do not change anything. This is paradoxical, but, unfortunately, this is the way the trading world works.
A trade journal, its maintenance and calculation of negative trades gives an understanding of the causes of their pain, its awareness and acceptance, allows you to get rid of unnecessary actions
You need to properly treat losses, not be afraid of them and fix everything in your diary, because that is how we will find out why it is impossible to consistently go into a plus.
The trading journal should include a calendar, the size of the deposit, the amount with which the trader entered into the transaction and their result. Additionally, you can prescribe the reason for entering – for example, by what formation was entered, – as well as the reason for exiting the transaction.
This is an incomplete list of items that a trade journal may include. A trader can use not a homemade transaction log, but one of the professional online services that collect account statistics and have the opportunity to conduct a deeper analysis of trading activities. For example, Myfxbook or Fxblue.
Such services represent advanced trading statistics, in which not a single trifle will go unnoticed, however, while these tools are adapted for the traditional market, rather than cryptocurrency. You can also use the statistics of your trading terminal.
It is important to be able to collect points, do not exceed the maximum drawdown of 7−15%. The trader will be able to improve their skills and receive additional profits in this case.
It is also important to avoid random results and trade “for good luck.” Such transactions will take a significant part of the working time and trade deposit. Do not forget about the need to reinvest some of the money earned and build your personal financial plan.