The 4 Biggest Reasons You Need to Start a Forex Trading Journal

The 4 Biggest Reasons You Need to Start a Forex Trading Journal

If you’re new to Forex trading, you may not understand the meaning behind the term “journal.” No, it’s not a diary you keep tucked away for late night financial confessionals

Instead, a journal is a detailed account that keeps track of all the financial transaction of a business. This can be used for taxes, accounting, future reconciling and can be used for easy transitions between entering and exiting employees that need quick financial records. A good journal includes the date of a transaction, the accounts affected in the transaction and the amounts transacted.

If you’re used to balancing a checkbook, the format is similar. If you’re not used to this format, you may be used to your broker handling everything for you. While a broker’s journal can offer you information like margin uses and buying power, we still advocate for putting your own financial records directly in your own hands.

Curious as to our reasoning? Let us explain. We’re here to help you succeed on your path to forex profits, and creating a Forex trading journal can make that happen.

The 4 Biggest Reasons You Need to Start a Forex Trading Journal

The 4 Biggest Reasons You Need to Start a Forex Trading Journal

A forex trading journal offers perspective.

Timelines are a very concise way for absorbing information. Imagine having the choice between reading an entire history textbook, or alternatively having a timeline of the important information laid out for you.Your forex trading journal allows for easy access to a timeline of all of your trades, from start to finish – or at least, up until your current journey point.

This gives you insight to your patterns and behaviors, offering insight to your performance and how it has ebbed and flowed. This can show you a curve of your improvement, your highlighted successes and offers a direct record of how well you work with different currency pairs.

It acts as a planning tool.

On top of the above information, we suggest traders keep a detailed log of their trading plans, or what they plan for each trade. This gives traders the capability to make some important decisions in advance – how much risk can you accept on a trade? What is your profit target? Where do you want to enter?

This is how a forex trade journal becomes more like a journal and not so much a ledger. It organizes how you feel and what your plans are instead of just rote numbers.

You build proof your methodology is working.

Say you are really invested in working with one currency pair – in fact, you’re so invested, you swear by its success to others in the forex community. They’re skeptical. They want to know your methods and how they work.

Instead of floundering, your Forex trade journal offers proof, and this isn’t something to use just for showboating. Occasionally go over your journal and look for patterns of success or failure. Does your currency pair work for you, or is your idea of its success actually not as valid as you thought?

It identifies habit patterns and helps you improve.

Go back to the previous example – say that currency pair you fell in love with is actually not as successful as you thought it was, in hindsight. Instead of just having a guess, you have literal proof that it’s not as solid as you once thought because of proof in your journal.

Don’t get distraught. The answer to this problem is to learn from mistakes and correct bad habits. In general, your Forex trading journal can help shed light on your weaker areas. Instead of considering this a failure, look at it as something positive. You have the tools to better yourself at your fingertips.

All of these points detail a truth of Forex trading – we believe that being educated and informed is how you become successful. Whether it’s discussing what we can do to help you succeed or setting up your own forex trading journal, arming yourself with the right resources can be how you see more profit than ever before.

WHY WAIT?
BOOK IN YOUR FREE CONSULTATION NOW

Discover what Forex Trading can do for you
Fill the form below to receive your free Forex Trading Consultation today.





[recaptcha]