Forex Trading Journal Book - Example of How to Write a Forex Trade Journal
Excel Forex Trading Spread Sheet Journal will track all your trades in a Excel Forex Spread Sheet Journal. By following this simple & easy to follow excel forex spreadsheet trading journal writing tip, you can easily improve your forex trading results. Here is how you do it:
Step 1 - Write down WHY you're making a forex trade BEFORE opening a trade transaction on your excel forex spreadsheet journal.
Before opening a forex trade, write down in a excel forex trading spreadsheet journal the reasons why you're making the forex trade. Just write down in excel forex trading spreadsheet journal a few key reasons why you are making this forex trade transaction. Be honest with this excel forex trading spreadsheet journal. If you are honest, a forex trading journal will prevent you from making the biggest mistakes in your forex trading. If you see that you are making the forex trade because of anything other than a sound trading strategy. Do NOT MAKE THE FOREX TRADE TRANSACTION!
If you make a losing forex trade transaction, do not open another forex trade transaction immediately so that to make profits to neutralize the losses you've made, this is known as revenge forex trading, do not revenge against the forex market. Shut down the computer, walk away from your PC computer Desktop PC Desktop PC, and take a cold shower to cool down and chill. Remember that you will never any lose money which you do not put in. A winning strategy is not only about how much you win, but how much you don't lose.
Step 2 - Write down how you'll exit the forex trade transaction BEFORE making the FX trade transaction.
Do not get trapped with a great entry forex strategy without an exit strategy. Your forex strategy should have both great entry and exit forex trading strategies. One is useless without the other.
But you ask, Why bother? I know my forex trading exit strategy. Why do I ought to have it written down?
Well, the reason is this: humans are at best irrational, impulsive, and emotional creatures. If you have your forex exit strategy written down, you've a frame of reference when you exit a forex trade transaction. You will refer to your excel forex trading spread-sheet journal BEFORE exiting a forex trade. If you are closing a trade for any reason other than your original forex exit strategy, you must ask yourself why?
Your excel forex trading spread sheet journal will save you more money than you can imagine. It will prevent you from making impulsive moves, which is usually why forex traders lose money in forex trading.
Step 3 - Write down why you exited the FX trade transaction.
This should be the same reason that you wrote down in step 2. If it is not, it is up to you to analyze it. The most common reason why most traders deviate from their trading strategy is lack of discipline. Your excel forex spreadsheet journal will be looking back at you with glaring evidence of exactly why you are not a winning Forex trader.
Step 4 - How to Interpret the Forex Trading results
You must learn from your mistakes in forex trading. This is the best way for any trader to improve their trading profits. Everybody makes mistakes, but great forex traders are able to learn from them & not repeat.
And the best way to learn from your mistakes is to write down and document them in a excel forex trading spread-sheet journal. A few years down the road, you can still look back and realize that you are still making the same errors you were when you first began forex trading.
This data can not be found in any book or seminar. Your excel forex spreadsheet journal is personal and is uniquely you. Your personality will ascertain type of forex trader you'll become, and will also determine type of mistakes you'll make.
Not only does your excel forex spreadsheet journal highlight your weaknesses, it'll reveal the forex trade transactions that are most profitable. After a little while you'll see the type of forex trade transaction setups that make you the most money, & a forex pattern will emerge. Don't let this data on your excel forex spreadsheet journal navigate to waste.
You should do every effort to understand why those forex trade transactions went well & try to replicate it as often as possible. Profitable forex traders know their strengths & weaknesses. They play on their strengths and try to minimize their weakness.
Do not get lazy and forget to write in your excel forex spreadsheet journal. Documenting your thought process is fastest and surest way to get better at Forex trading. Do this consistently, and you will study more about your habits than you can imagine.
Your forex trading goal is to spot & break the bad habits as soon as possible. If you notice that you always hang onto a losing forex trades too long, you should do everything in your power so that to prevent this from happening again.
Summary
Your excel forex spreadsheet journal is gold. It contains a wealth of information that will play a vital role in your success as a forex trader. We strongly urge you to use it for atleast 1 month. If it has not helped improve your forex profits in thirty days, then feel free to stop. But be sure to try it before deciding not to. It may be just the forex trading tool needed to push your forex trading to the next level to becoming a successful trader.
Writing a Forex Journal Example Template - Forex Trading Journal Sample
The following is an example excel forex trading spreadsheet journal template that a trader can use to come up with their own trading excel forex spreadsheet journal template for writing their own:
Date - Friday 22 August
Page 1
EURUSD - Sell Forex Signal
Day
- Day forex trend is short sell, RSI indicator 33
- Volatility is high bollinger bands pointing down
- Forex Price was retracing but down forex trend is still intact confirmed by RSI, market has resumed down direction
4H Chart
Forex Price is moving down indicated by Moving Average indicator down crossovers, RSI at 46 moving downwards, volatility is low.
1H Chart
Moving Average indicator are moving down, RSI at 34, volatility is medium and forex price is below middle bollinger band.
Enter sell forex trade transaction based on forex trend for the daily chart which is short, RSI indicator 33 and also all entry signals for H1 Forex Chart have been met.
Take Profit- at 100 pips between support1 and support2
Profit by Market Close: +33 pips
Why Trade Was Profitable
1H- Moving Average indicator for 1 hour heading down all day, MACD indicator gave a sell signal after leaving overbought, RSI indicator less than 50 and the forex price action direction on H1 was down, volatility was medium and bollinger bands were pointing down.
Day Forex Chart - The daily Moving Average indicator were crossing over to signal a long forex trend but was a non confirmation since the MACD indicator showed short, RSI indicator at 32, therefore this was just a retracement, the trade was opened when the price started to come down this was just a retracement.
4H Forex Chart - The retracement was already complete and the and the Moving Average indicator crossover system had already given a down crossover forex signal, RSI was heading down and MACD indicator also gave a short signal.
Page 2
USDCHF - Buy Forex Signal
Day
Trend is upwards based on RSI indicator at 65 and MAs are flat, Bollinger bands are wide pointing up, volatility is high.
4H
RSI at 50, stochastics leaving oversold, Moving Average indicator crossover has given an upward forex trend crossover forex signal.
1H Chart
Moving Average indicator moving up, RSI indicator at 64, stochastics heading upwards
Enter buy forex trade transaction based on daily chart and all buy long signals have been met
Profit at Market close +45 pips
Why Transaction Was Profitable
H1- Ma for H1 headed up all day, MACD indicator gave a buy signal after coming up from oversold, RSI indicator was above 50 all day, volatility high and bollinger bands going upwards.
Day Forex Chart - the daily MACD indicator was bullish, the RSI indicator was at 68 heading upwards, market was retracing but had already started turning up, volatility was high with bollinger bands heading up.
4H- Ma had an upward crossover forex signal, the RSI was heading upwards, the MACD indicator was above zero centerline mark, volatility was low.
Page 3
GBPUSD - Sell Forex Signal
Day
Day forex trend is short, RSI indicator is at 23, the market has resumed downward forex trend after a retracement, big black Marubozu candle pattern.
4H
Forex Price has turned down after retracement, RSI indicator at 38, stochastics leaving overbought heading down and Moving Average Crossover system has given a short sell signal heading down.
GDP for Britain came out worse than expected, GBP Fundamentals and Technical Analysis = downward forex trend
Entry - Sell forex signal based on Day and all forex sell signals rules on the 1H have been met
Profit at close +35 pips
Why Trade Was Profitable
1H Forex Chart - Moving Average indicator were heading down all day in a steep manner, the MACD indicator had left overbought giving a sell signal all day, RSI indicator stayed low at around 30, Fundamental indicators came out extremely bearish, volatility was high and bollinger bands were pointing down.
Day - The Daily Moving Average indicator were to crossover but because of the retracement, headed right down again with a big black forex candlestick(250 pips), MACD indicator was bearish, RSI indicator at 22 heading down and bollinger bands pointing down, volatility was high.
4H Forex Chart - 4 hours chart the moving average had given a down crossover forex signal, MACD indicator was below zero center line mark, RSI was below 50.
Page 4
USDJPY - Buy Forex Signal
Day
The day forex trend is upwards, RSI indicator at 52, stochastics heading upward and Moving Average indicator pointing sideways, the market has resumed upward direction after retracement.
4H
MAs going upwards, stochastics leaving oversold region, RSI indicator at 52
1H
MAs going up, RSI indicator at 65, both stochastic heading upwards
Entry - Buy forex signal based on Daily and all buy signals rules on the 1H have been met
Profit at close +64 pips
Why Forex Trade Transaction Was Profitable
H1 Forex Chart - MAs were moving up all day, MACD indicator gave a buy signal, RSI indicator was above 50 volatility was high and bollinger bands were pointing upwards.
Day- MACD indicator was in bullish territory above zero center line, RSI indicator was below 50 but pointing upwards, the Moving Average indicator were flat, bollinger bands were pointing upwards and volatility was low.
4H Forex Chart - on the 4 hour chart the moving averages had given a buy crossover forex trading signal, RSI at 51 after crossing above the 50 center-line mark.
Profit at Market Close
EURUSD +33 Pips
USDCHF +45 Pips
GBPUSD +35 Pips
USDJPY +64 Pips
Total = 177 Pips
Why forex trades were profitable
Why transactions were profitable is because multiple time frames analysis were used correctly and the direction of the forex price action was analyzed correctly by following the rules of my forex trading system as specified on the forex trading plan.
Forex Entry Rules in the 1 Hour chart time frame had matched before opening of these forex orders
Fundamental Indicators were also used to predict some moves.
In Short - Today I stuck to all the rules of my forex trading system
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Record of Excel Forex Journal Entries Explained Using Examples
1.
EURJPY Sell Trade 13-December-2011
Trade opened EURJPY Sell forex Signal
Date: 12- 13-2011
Chart Time frame: 4 Hour Chart
Why Transaction was opened
- Both MAs were moving downwards
- RSI indicator is below 50 Level, therefore the forex market trend is bearish
- MACD indicator is heading towards Bearish Territory
- OBV indicator has broken the upward trend line, therefore the forex trend direction is downward
The forex price is also touching the downward forex trend line therefore this would be a good place to open a sell forex trade.
Closed
Closed by Take Profit 300 Pips
Date: 01-02-2012
Why this trade was profitable
It was profitable because the risk : reward ratio of this setup was high.
The forex trade went back to its downwards after touching the downward forex trend line.
The OBV indicator is a forex leading indicator & when it broke its upward forex trend line it meant forex price was going to go downwards.
After this leading forex trading signal all the signals turned to show a bearish momentum and a bearish forex market trend.
2.
EURUSD Sell Forex Trading Signal - 13-December-2011
EURUSD Sell Forex Signal
Date: 12-13-2011
Why Forex Trend Transaction was Opened
- Both of the Moving Averages were heading downwards
- RSI indicator is below 50 center line level
- MACD indicator is heading downwards
- OBV forex indicator has broken its upward forex trend line
Closed
Closed by Take Profit 300 pips
Date: 01-05- 2012
Why the transaction was profitable
All the rules of our system were followed before entering the short sell forex trade.
The long term forex price action direction of the EURUSD is downwards as shown by the downwards trend lines.
Forex Technical Analysis
There was a rally of the EURUSD which only went up to the previous resistance level, a good place to sell again. From the above diagram the first transaction has taken profit the second one is still continuing.
EURUSD Closed by Take Profit
3.
GBPUSD Sell Forex Trading Signal - December-20-2011
Date: 20.12.2011
Trade Opened - GBPUSD Sell Forex Signal
Time frame - 4 hour chart
Why Transaction was opened
- Both MAs are moving down
- RSI indicator is below the 50 center-line mark
- MACD indicator is heading down
- OBV forex indicator has broken upward forex trend and the forex market trend now is bearish.
A downward forex trend line can also be plotted on the forex price chart. This shows that forex trading rules of our forex trading system have been met and the forex market trend is bearish.
Take Profit - 300 pips
Stop Loss - 100 pips
Take Profit Hit
Closed by take profit
Date: 29.12.2011
Why This Forex Trade was Profitable:
All forex trading rules for the forex trading system were met before opening the transaction.
GBPUSD after hitting take profit.
4.
GBPJPY Sell - December-22-2011
Date: 22-12-2012
Opened: GBPJPY Sell Forex Signal
Time frame: 4 hour forex chart timeframe
Why the forex trade transaction was opened
- Both Moving averages moving down
- RSI indicator below 50 center line level
- MACD indicator is heading down
- OBV forex indicator has broken upward forex trend line meaning forex price will soon follow.
Since volumes always precedes forex price the forex price will break the upward trend line & start to move downwards. In addition the longer term forex price direction is a downward.
Closed
Closed by take profit (300 pips)
Date: 01-02-2012
Why this forex trade was profitable
The long term forex trend is a downward.
All the forex rules of the forex trading system were followed before opening the forex trade.
GBPJPY short sell forex trade closed after take profit.
