Most forex traders don’t find the need to keep a forex copy of their trading books. This is mostly because most brokers offer trading records in real time. Most traders will also argue that brokers keep track of any available buying power, profit and loss of all trades and also margin usage. While all these are accurate facts, it is important for you as a trader to keep a separate forex copy.
What is a trade journal?
This is a trading tool made of written records of all your forex trading activities. It is ideally kept by the trader and not the broker. This forex copy has information that may or may not be captured in a statement of the trader’s account. The information contained in a forex journal includes market condition at the time of making the trade and the trader’s mindset at the time of the trade.
A trading forex copy it meant to keep accurate records for the trader. For it to be productive, it is important for the trader to ensure the information captured in the journal is accurate and up to date.
Here is why it is advisable for you to keep a separate forex copy.
1. It Is a Historical Record
When you decide to keep a forex copy separately, the journal offers you a historical perspective. This is because it summarizes all your trades and also provides the current state of your trading accounts. It will show you individual trades and also the effect of all trades on your accounts. This is information you can use as your trading database. This makes it easy for you to make a more informed trading decision in the future.
2. A Planning Tool
Apart from recording your trading patterns, keeping a forex copy for yourself makes it possible for you to make future plans for each trade. This makes it possible for you to make reasonable considerations for each trade before investing. You are also able to set parameters on when will be best to enter into a certain trade, the risk you can take on the trade, what your profit target will be and also how you will be able to trade. In this way, your forex copy becomes your way of recording actual numbers and also making reasonable planning for your trades based on your findings.
3. Modification of the Mind Pattern
With a forex copy journal, you are able to gauge your habits and change the destructive ones to constructive ones. As you continue to learn how best to trade your plan, you develop more confidence. This makes it possible for you to make more informed decisions as opposed to random ones, you will be able to tell what trades may make losses and this helps you to cushion your finances to handle the losses. Trading in your level of confidence is a very important mental and emotional aspect.
When you have a journal that offers statistics, you are able to create a trading plan through defining needed action parameters. Modifying your mind’s pattern is very important for developing your trading skills. This is a vital tool for any successful trader.
4. Verifying Your Methodology
Another good reason to keep a forex trading journal is that it has the capacity to verify your methodology over time. This is because with time you are able to know just how well your methodology performs based on the ever-changing market trends. With time, you will be able to know how well your system performed in different markets such as range bound market or a trending market. With a journal, you are also able to see how your system performs in varying timeframes and also the impact different trading decisions have on your overall trade. For you to completely understand the logic that supports your methodology, you need to keep a forex copy journal.
What is a trade journal?
This is a trading tool made of written records of all your forex trading activities. It is ideally kept by the trader and not the broker. This forex copy has information that may or may not be captured in a statement of the trader’s account. The information contained in a forex journal includes market condition at the time of making the trade and the trader’s mindset at the time of the trade.
A trading forex copy it meant to keep accurate records for the trader. For it to be productive, it is important for the trader to ensure the information captured in the journal is accurate and up to date.
Here is why it is advisable for you to keep a separate forex copy.
1. It Is a Historical Record
When you decide to keep a forex copy separately, the journal offers you a historical perspective. This is because it summarizes all your trades and also provides the current state of your trading accounts. It will show you individual trades and also the effect of all trades on your accounts. This is information you can use as your trading database. This makes it easy for you to make a more informed trading decision in the future.
2. A Planning Tool
Apart from recording your trading patterns, keeping a forex copy for yourself makes it possible for you to make future plans for each trade. This makes it possible for you to make reasonable considerations for each trade before investing. You are also able to set parameters on when will be best to enter into a certain trade, the risk you can take on the trade, what your profit target will be and also how you will be able to trade. In this way, your forex copy becomes your way of recording actual numbers and also making reasonable planning for your trades based on your findings.
3. Modification of the Mind Pattern
With a forex copy journal, you are able to gauge your habits and change the destructive ones to constructive ones. As you continue to learn how best to trade your plan, you develop more confidence. This makes it possible for you to make more informed decisions as opposed to random ones, you will be able to tell what trades may make losses and this helps you to cushion your finances to handle the losses. Trading in your level of confidence is a very important mental and emotional aspect.
When you have a journal that offers statistics, you are able to create a trading plan through defining needed action parameters. Modifying your mind’s pattern is very important for developing your trading skills. This is a vital tool for any successful trader.
4. Verifying Your Methodology
Another good reason to keep a forex trading journal is that it has the capacity to verify your methodology over time. This is because with time you are able to know just how well your methodology performs based on the ever-changing market trends. With time, you will be able to know how well your system performed in different markets such as range bound market or a trending market. With a journal, you are also able to see how your system performs in varying timeframes and also the impact different trading decisions have on your overall trade. For you to completely understand the logic that supports your methodology, you need to keep a forex copy journal.
Once you are aware of the expectancy of your trading system, you are able to act confidently.