In any endeavor, record keeping is very important. The very same principle applies when it comes to trading. If you want to be a successful trader and make real profits at your craft, then it is vital that you keep records professionally.
In fact, virtually every trading desk that you encounter today will require that you keep some form of record of all your trading transaction.
These are usually done in the form of a journal. To make the most benefit of doing this, you need to make certain that the journals or the little notes that you keep contains relevant information such as what trading activities you have been carrying out, all the relevant planning that went into the execution of your trading activity as well as the final outcome of each trading exercise.
Essentially, carrying out the process of keeping an up-to-date journal is the singular most distinguishing difference between an experienced trader and a novice in the system.
This is because through perusing your records, you are able to spot the relevant trading patterns to establish to turn a profit.
So, to start keeping a good trading journal, there are certain things that you need to pay close attention to. Some of these things include what entry price you are dealing with at the start of your trading activity, the price at its conclusion, what time of the day you are carrying out the transaction as well as all the resources that you invested into the exercise.
Ensure that you have a written record of these transactions and go over them diligently to make sure that you don’t get anything wrong. It’s fine if your journal doesn’t start out looking highly professional. There is no set pattern for keeping a journal. Just write your details in a way you can understand. Gradually, you will become better at it.
To get started, check out this online trading journal guide.