Components of Forex trading
The forex trading journal is the trader's one of the most powerful tools. In this article we will look into the components of forex trading journal. As you must be aware, what differentiates a successful trader form an unsuccessful one is the openness to learning from each trade. A successful investor is always willing to put in the and periodically review each trade that is made.
A forex trading journal is a great way for traders to document their trades. Writing down certain details of your trades in a file or in a word document, gives one a chance to look back in the history of your past trades and learn and grow, thus moving from one experience.
Let us now take a look at some of the main elements of forex trading journal, which are important to document about each trade:
It is important to note down the general market conditions for that specific trading day. Note down the factors like the volatility in the market, is the market ranging or trending, etc;
Entering Time and Price
Note down the time and the price when you entered the trade.
Time and Price at Exit
Note down the time and the price when you exited the trade, giving the reasons too.
Nature of Trade
Write down if the trade was a long or short trade, one of the important components of forex trading journal.
Happenings of the trading day
It is important o remember what happened in the market from the time you entered and exited.
Your money management parameters and how you used them in the trade are important to note down.
Putting the charts
It is a good idea to attach a chart with their analysis, for it will help you to remember and understand the trade better when going back.
Another of the important elements of forex trading journal are your thoughts. It is always a help to note down your feelings, thoughts and emotions on that particular day and how you dealt with them.
This is our lesson in understanding the forex trading journal components, which we are sure will go along way in improving you as a trader. As always, good luck with your trading!