Forex trader's diary
What do you need to be successful in trading? How do I close trades in plus? How do I know where I made a mistake? In fact, there is no need to search for the answer somewhere deep. The "most secret secret" of achieving profitable trading lies on the surface. It is much written about and often discussed. We are talking about the trader's diary.
Let's say at once: absolutely all professional, successful traders on the exchange keep a log of trader's transactions.
It is a mistake to think that the main thing in trading is the ability to build Forex channels, trend lines, and read Forex indicator readings. The main thing is to learn to see and take into account your mistakes, to control your emotions. This is what the trader's diary helps with.
The trader's journal is called in different ways: the Forex trader's diary, the trader's transaction log, etc. However, the essence does not change: the trader records absolutely everything that is relevant to trading, and then will analyze the data obtained. This is necessary in order to increase your trading results to a completely new level.
And it is not particularly important where You prefer to trade: it can be Forex, NASDAQ, MICEX. None of this matters. The main thing is what trading tools of a trader You use during trading: stocks, options, currency pairs, futures. And it doesn't matter which trading platform is closer to You: it can be web terminals, MetaTrader, QUIK, Yes, even a demo account!
You will only progress and really grow professionally if you start keeping a Forex trader's diary.
Trader's log: how to keep it?
Once you decide that you need a diary, the question arises :" where can I get it?"
You can keep a log of the trader's transactions in Excel, many traders use this option. First, it is the simplest and most accessible trader's diary. A sample of how to keep a journal in Excel can be found on the Internet in specialized forums. You can download the trader's diary. This option is also popular when a trader simply downloads a template and fills it in. This is fast and convenient. Yes, You can even keep a trader's log by hand in a Notepad. The main thing is that You are comfortable!
In the picture, you can see what the trader's transaction log looks like in Excel.
trader's transaction log excel
As soon as You have decided that you will keep a trader's diary, the sample of its appearance is determined, another question arises: why should you keep it? What should I write there?
Transaction log: what is it for?
Well, let's figure out why Forex traders keep their transaction logs at all. As you know, there are automatic services, the same Myfxbook. But the only thing is that all automatic services and the same trader's diary in Excel do not replace, but harmoniously complement each other. And the differences between services and regular diaries are very significant, and their functions are different. For example, various services simply automate and simplify the collection of various dry Forex statistics, figures, percentages, drawdowns, returns, average Stops and Takings, and more. All of the above data comes to a readable and visual form, after which they can be safely and effectively evaluated and analyzed.
But what does the trader's magazine do?
The trader's diary in Exel allows you to:
Clearly assess how much control You have over yourself when opening trades;
In the course of bidding;
During the position closing period;
Do you follow the rules of your Forex trading strategy clearly and competently;
The log shows the overall discipline of the trader.
After a while, You can take all your notes in a more relaxed environment, analyze your trading from the outside, and you will immediately see all your weaknesses as a trader. Everything will be at your fingertips! You will suddenly notice that:
Suddenly you break the rules of your own strategy;
You are too long and often nervous about an already open position (this means that you are subject to the trader's fears);
During trading, You "chase the deal" - enter when there was no signal to enter;
Closing a profit position too soon;
Or, on the contrary, you sit out your losses.
You have now seen a list of the most popular, typical sins of most traders. And you can continue this list indefinitely. We think you have already grasped the main message. The trader's log allows the trader to identify their mistakes and start working on themselves. After studying the diary, You will be able to clearly identify the points that prevent you from achieving success personally.
All professionals in the world of trading, for example, Alexander elder, the Creator of the popular strategy "Three Screens", keeping a trader's diary stands out as a fundamental, key factor that makes it possible to distinguish a good trader from a lazy one.
Of course, most traders know about the benefits of keeping a diary, but they are defeated by laziness. After all, logging requires a lot of time, perseverance, iron discipline, and of course a systematic analysis of the records: this can be done at the end of the trading day or week. In short, regular and conscientious transaction logging is a very painstaking job.
Whether you need it or not is up to You. However, if You are really set on serious results in the financial markets, we think the answer will be obvious. For those who accidentally got into the world of trading to have fun and are not going to stay here for a long time, the transaction log will not help. They don't need it.
In addition to all of the above, the choice of how best to keep your records and how regularly is up to You. Remember that there is no universal template for creating a trader's diary. Everyone leads it as it is convenient. So you can safely Refine your own, add details to it, and describe the reasons why a particular position was opened. The main thing is that You have a blank.
And one more tip from us in the end: it will be great if You start adding screenshots to your trader's diary that were taken during the opening and after the closing of a trading position. When you start analyzing your diary, these screenshots will help you to restore your memory of the transactions you made.
Let's draw a line here. We have learned that the transaction log is really very important for a trader. Especially it is necessary for a beginner of the financial market. So do not be lazy, download, create your own trading diary and enter the "chronicle" of your transactions there.
Good luck with your trading!