Trading Journals in Forex :Turn your Weaknesses into Strengths

Keeping a trading journal helps a lot as it eventually becomes a valuable self written and analyzed resource. It really helps us better out trade because we have detailed information and can recognize and further eliminate/avoid making previously committed errors again and again.

I cannot over emphasize the importance of keeping a trading journal. One of chief reasons is that you can classify your errors into certain groups like “didn’t stick to the strategy”, changed time frame”, “and went against stop”, “stopped it too soon” etc and then easily identify a short coming in your trading strategy and work in the direction of not repeating it. I always like to focus on a single error and wipe it completely and then get on to the other-eventually mastering your weaknesses.

And then we have such varied options to do the same. It becomes extremely simple with a word doc, Excel spreadsheet,you blog or a thread on the forums. The last one is particularly interesting and useful for novice traders as you can readily share your trading experiences with others.I also like to participate here in other such sites where you can answer other people's queries.

But we cannot find all traders keep a journal. And there’s a reason. Keeping a journal is not hard however it needs “work” and a certain level of consistency. If it aint for that it is rather worthless. The key here again is that it gets better with time. The key to successful trading is to continuously measure, chase and keep it focused. I always like to say that two things in Forex trading can be disastrous- half baked knowledge and half –hearted efforts. Keeping a journal helps fight both.

You can include all the details in your journal
Fundamental and technical trading strategies
A profile of major currency pairs
Trade parameters for different market conditions
What moves the currency market?

With your trading journal you can enter the market with confidence and exit with exits!