Developing and keeping a Forex trading journal is one of the important steps in Foreign exchange trading. In this post, I am going to offer you a trading journal to log all your trades which will help your trading journey and mindset.
Why do you require a Forex trading journal?
First off, you require a trading journal due to the fact that you need to track your trading performance over time. Lot of beginner traders pay close attention to the outcome of each individual trade; nevertheless, the professional trader understands that their trading performance is determined by many trades over a long period of time, not simply one or 2. So, it is necessary to find a way track your trading results over a series of trades as this will help you as a trader not to pay much attention to each individual trades. You could assume of your trading journal as a concrete and also continuous pointer that your trading performance is determined over a collection of trades.
If you do not have required capital to trade with, keeping record of your trading outcomes over a lengthy duration of time is evidence that you CAN trade, and also if you have this evidence will help you find investors to fund you to trade. So, we can see now, developing and keeping a Forex trading journal is important component of functional Forex trading plan.
Developing and keeping a trading and also developing offers you the framework needed to construct your trading regimen on and it also assists you concentrate and also take a look at each specific element of a trade, which we will discuss below. Basically, Foreign exchange trading success is the outcome of doing lot of things the proper way each time you engage with the market, and also a Foreign exchange trading journal aids you do every little thing the proper way whenever you trade.
What are the elements of trading journal and How to prepare one?
The pictures listed below are actual images of my trading journal. They are not real trades I took, although it was an excellent price trading action trading setups. This is the exact same trading journal I use, you could use it as well if you like, or modify it to suit your need.
Entry Date: This is obvious; the date you entered the trade. If the order is not filled delete it from your trading journal.
FX Pair: Particular security traded, this can either be a currency pair or Gold/Silver for a lot of us.
Entry B / S: Here you enter whether you bought or sold and record the specific level/price you entered at.
Planned Stop and Targets: You will enter your pre-determined stop and also target prices in these boxes. It’s extremely important to pre-define your stop level and also target level.
Possible $ Risk: Just how much money you can lose on the trade?
Possible $ Reward: Just how much money you intend to make on the trade?
Position Size (lots): Your placement dimension on the profession, or the variety of mini/ mini/ conventional great deals being traded. For more information concerning setting dimension visit this site: Forex position sizing.
Exit Price: What price did you actually exit the trade?
Pips +/-: The amount of pips you lose or gain on the trade.
Total P/L: Just how much complete loan you lose or gain on the trade.
Planned R:R : Exactly what was the pre-defined risk reward ratio of the trade?
Actual R:R : Exactly what did the risk reward ratio really end up being? This is necessary, if you typically aren’t attaining a risk reward of 1:2 or better on your winning trades, you will certainly see that in time it’s extremely difficult making money in the market. You will certainly observe that if you take earnings too soon this significantly reduces your risk:reward ratio. If you take a risk that is larger compared to what you had actually planned the very same thing happens.
Exit Date: Date the trade is closed.
Setup: Exactly what was the setup and why did you take the trade? Did you trade a valid price action trading strategy?
Final thoughts
Recording your Forex trading results is an important component to become a professional Forex trader. As your trading journal advances over a series of trades, you will certainly begin to see the importance of it a lot more plainly. The truth of Foreign exchange trading is that at some factor on your journey of discovering just how to trade, you definitely have to figure out a method to end up being a well organized and also self-disciplined trader, or else you just will not become effective in the markets. Producing as well as carefully keeping a Foreign exchange trading journal is the quickest and also most reliable method to establish right into a lucrative as well as self-disciplined and profitable Foreign exchange trader.