Most new traders are told that they need to keep a forex Australia trading journal. However, many of these traders are not told how they should be keeping it. These trades are generally not told about how they should be analysing the information in the journal either. It is important that you know how to keep and analyse your forex Australia trading journal. Only when you know this will you be able to receive all the benefits that come from the journal.
What You Have to Record
When you start your journal the first thing you should put in it is your trading plan and strategy. You should bear in mind that the strategy you put in the journal may change over time as you grow as a trader. This means that your strategy is not something that is set in stone and you are allowed to amend it.
Once this has been done you need to start keeping track of all the trades you complete. You need to include the exact details of the trade including the stop loss points and any information which when into the decision making process. You must include the value you entered in as well as the exit value when you get it. You should also state what you make or lost on the trade.
Why You Need a Forex Australia Trading Journal
You may wonder why you should keep such detailed accounts of your trades when you can get a report. The fact is that this detailed journal will help you more in the long run than the reports you can get. Having a journal will help you to see where you have gone wrong in your trades and what you have done right. By having all the information you will be able to better analyse your own trades and movements. Analysing your trades should be done regularly and this is how you will become the best trader you can possibly be.
Analysing Your Trading Journal
You should analyse the information in your journal as regularly as you can. Of course this does not mean you should do this every other day. It is best that you analyse the journal once every two weeks or even once a month. There are certain things you should look at when you analyse the entries in your journal:
- You should look at all the details of your trades. Are you being consistent in your trades? It is important that you are consistent no matter what you are trading.
- The next thing you should look at is the currency you have been trading. Are you trading one type of currency pair or are you moving about. Different currency pairs needs to be traded in different ways.
- You should then look at the trades where you have lost. You should look at what could have gone wrong that caused you to make a loss. You should see if there was any news that day and if it affected the market. You should also check the details of the trade as you may have made a mistake.
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