Benefits of Trade Journals
While forex trading is a relatively simple process, many professional and serious traders will make use of a trade journal. Trade journals can be very beneficial and will offer benefits to those that are goal oriented. The idea of a journal is to have something that will provide traders with the information they will need to improve their trading performance. Forex traders will keep journals to become more consistent in their profits and to keep track of important information such as trends. By using a journal, even new traders can become more organised and educated and will see how they can benefit from keeping track of their trading activities online.
Experienced traders who rely on these journals also believe that keeping them will help them become more disciplined as traders. Some traders who are new to trading will give up after a few failed trades, never looking to see where the problems were or what lead to the failure. Those that keep journals will have a better understanding of how and why their trades failed. The logs will provide a complete history of all trades that have been made and will provide useful information when looking for errors.
When keeping a trading journal, traders should know that his is not the place where they should be writing entry and exit prices. This is where other information will be stored, which should include things relating to the specific trade like why the currency pair was chosen, reasons for exiting, money made or lost and other aspects of the trade that can provide information in the future. Most experienced traders will keep some type of journal and these can be used by new traders who are just starting out.