September 7, 2017 at 1:10 pm #460
Traders need to document their trading history. This documentation is nothing but the recording what the traders are doing in Forex. If you are not doing it right, you can know from the Forex market and try to rectify your mistakes. Most traders of Forex think they can automate their trading and will make the minimum mistakes. This is not right when you are trading in the most volatile financial market. Every step that you are making in Forex is a process to learn and to know if you have done something wrong, documentation is needed. This article is going to tell you how you can improve your trading when you start documenting your trading history.
It is a record of your Forex career
It is a journal of your Forex career. Most traders in Forex do this mistake by not keeping a record of their trading history. If you are not keeping a record or documenting your trades, you cannot compare these trades with your trades after a week or months. Most traders think of documenting as some type of virtual diary. We strongly recommend that you keep a real-life paper book diary. Virtual diaries need many things and you cannot simply just write something which may have come to your mind. In your paper diary, you can keep all of your trading histories. There is no need of electricity or you do not need to make anything to keep a reminder of your trades. You simply open your diary and start writing.
Paper based documentation
A lot of traders who have been in Forex for a long time always keep a diary with them. It is because you can learn something new anytime and you do not want to miss that. This uses where paper diaries beat your virtual diaries. You can simply start writing where modern Forex trading diary or journal only has some specific criteria for writing. Like you can only enter your trading position, the selling price and if you have to make lose or profit in the market. There are no other things and you have very much limited choice to write everything that has occurred during your trading session. When you compare yourself with your older self, you will see that you are slowly increasing your profit generating capability in Forex trading industry. This is what traders want and is only possible by documenting your trading history.
Learn from your mistake
In the United Kingdom, all the novice traders are advised to trade in demo account so that they don’t lose any real money. But when you are practicing the art of trading you need to find your trading mistake. If you don’t keep all the record of your trade execution it will be nearly impossible for you to develop your trading skills. For this many traders have been losing money even after two years. They really don’t know their weakness and strength. Being an active participant in this market you need to have a strong focus on the trading industry. If you simply trade the market without assessing your trading history then at the end of the day you will learn nothing. Learning is very vital in trading. And if you are considering trading as your full-time business then you need to make sure, you are trading with a reputed broker like Saxo. Without having the perfect trading environment you can’t do the perfect analysis of this market.
Summary: Maintaining a paper based trading journal is very important in the financial industry. Always trade the market based on major three types of analysis. Focus on the quality trade execution and trade with proper money management. This is the market is extremely volatile and if you don’t concentrate 100 percent then you will never understand the nature of currency movement.
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