The Steps of Developing a Balanced Trading Journal
The traders use the trading journal for keeping the records of the previous trades. This reflects their trader’s previous performance and helps to determine the progress. The journals also help to identify the strengths and the weak points. People can also evaluate their performance through the business journal as it shows every detail of the previous activities. When you are going to make a plan, if people able to see the trading journal properly, he or she will able to bring some practical changes in the plan. So, investors should know how to develop a trading journal. There are four steps of making the plan that are being discussed here.
Step 1
The investors should select a book or spreadsheet to enter the data. In the spreadsheet, the person will able to note the data properly. This will also help to find out the specific information within a short time. People can also prefer the book where they just need to make the chart and put the information on different lines. But don’t make the process to much complex. And make sure you include the basic parameters like the trade execution details. Many retail Singaporean traders often ignores the most important points in their trading journal and thus they fail to get great results.
Step 2
People should identify the information which is needed to record. The person needs to record the reasons behind the trade, and their feelings about the trade. For regulation of the business, the investors are required to do fundamental and technical analysis. The fundaments analysis is done on the basis of the news releases. On the other hand, technical analysis has been done through the chart patterns. People need to do both of them or anyone for doing business. So, they need to note down it. If a person fails, he or she will feel exhausted.
When a person sees a winning streak, he or she will feel better. This is also necessary to note down to know about the emotions which are emerged during the time of trading. The strategies which are applied to regulating the specific trade are necessary to include in the trading journal. Those who are trading with Saxo Forex broker can use their trading platform dashboard data to focus on the important details.
Step 3
The investors should not take more time to keep the record. They do this immediately so that you can record the fresh information. This is casual that the people will forget this after the passing of time. The businessmen should enter the data after placing the stop-loss and the take profit orders. Some people do not take it seriously and show laziness. For this reason, they are not able to record the exact reasons and feel of them.
Step 4
When a person has huge data, he or she needs to compile the data. People should divide the successful trade, and the losing trade so that they can find out them instantly. When the data will be compiled in the trading journal, the person is required to observe this properly so that he or she can able to identify the mistakes and help to identify the percentage of the winning trade and the losing trade. A person can identify which strategy works better and which are not. You need to analyze the data properly to develop the performance.
The person who does not maintain the trading journal cannot able to measure his or her trading performance. Quantifying the performance is necessary to determine the progress. But, many traders do not understand the significance of the journal and avoid this. Then, they do not recognize which strategy will work better and which are not. When the present situation will be correlated to the past situation, people will get the best suggestions for the previous records. If people keep the wrong record, he or she will repeat the mistakes which have done by them previously. So, you should build an error-free business record.
