FX Journal Book Template - Example Illustration of How to Write a Trade Journal
Excel Forex Spread Sheet Journal will track all your trades in a Excel Forex Spreadsheet Journal. By following this simple, easy to follow excel trading spreadsheet journal writing tip, you as a trader can easily improve your trading results. Here is how you do it:
Step 1 - Write down WHY you're making a trade PRIOR TO registering and opening a trade transaction on your excel trading spread sheet journal.
Before and Prior to opening a trade transaction, write in a excel trading spread-sheet trade journal the explanations why you are making the trade. Just write down in the excel spreadsheet journal a few key reasons why you're making this trade. Be honest with this excel trading spread-sheet trade journal. If you're honest, it'll prevent you from making biggest mistakes in your forex. If you see that you're making the trade transaction due to and because of anything other than a sound trading strategy. DO NOT MAKE THE TRADE TRANSACTION!
If you make a losing trade, don't open another trade immediately so as to earn profits to neutralize the losses you've made, this is referred to as revenge fx trading, do not revenge against the market. Shut down the computer, walk away from your Desktop computer PC, and take a cold shower to cool down and chill. Remember that you will never any lose money that you don't put in. A winning strategy isn't only about how much you win, but how much you don't lose.
Step two - Write down how you'll exit the trade transaction PRIOR TO making the trade transaction.
Don't get trapped with a great entry trading strategy without a good exit strategy. Your strategy should have both great entry and exit strategies. None is useful without the other.
But you ask, Why bother? I know my forex exit strategy. Why do I need to write it down?
Well, the reason/explanation is this: people are irrational, impulsive, and emotional creatures. If you have your exit strategy written, you have a point of reference when you as a trader exit a trade transaction. You'll refer to your excel trading spreadsheet trading journal BEFORE exiting & getting out of a trade transaction. If you're closing a trade position for any reason other than your original fx exit strategy, you as a trader must ask yourself why?
Your excel trade spreadsheet trading journal will save you more equity than you as a trader can imagine. It will prevent and stop you from making impulsive moves, which is generally why traders lose equity in trading forex.
Step 3 - Write down why you exited the trade transaction.
This should be the same reason/explanation that you wrote down in step 2. If it's not, it's up to you to analyze it. The most regular reason why most traders stray from trading strategy is lack of discipline. Your excel forex spreadsheet trading journal will be looking back at you with glaring evidence of precisely why you are not a winning trader.
Step 4 - How to Interpret/Analyze the results
You must learn from your mistakes in trading fx. This is the best way for anyone to improve their profits. Everybody makes mistakes, but great traders are able to learn from them and not repeat.
And the best way to learn from your mistakes is to write down & doc them in a excel trading spreadsheet trading journal. A few years down the road, you as a trader can still look back and realize that you're still making the same errors and mistakes that you were when you first started forex.
This data can not be found in any book or seminar. Your excel forex spreadsheet trade journal is personal & is uniquely you. Your personality will determine type of trader you will become, & also will determine type of mistakes you'll make.
Not only does your excel trading spread sheet journal high-light your weaknesses, it'll reveal the transactions that are most profitable. After a little while you will see the type of trade setups that make you as a trader the most equity, and a trading setup will emerge. Don't let this data on your excel fx spread sheet trade journal go to waste.
You should do all effort to understand why those trades went well and try to replicate it as often as possible. Profitable traders know their strengths and weaknesses. They play on their strengths and try to cap their weakness.
Do not get lazy and forget to write down in your excel trade spreadsheet trading journal. Documenting your thought process is fastest and surest way to get better at FX trading. Do this consistently, and you'll learn more about your habits than you as a trader can imagine.
Your trading goal is to identify and break your bad habits soonest as possible. If you notice that you always cling on to a losing trade transactions too long, you should do everything within your power so that to prevent this from happening and occurring again.
Summary
Your excel trade spreadsheet journal is gold. It contains a wealth of data that will play a vital and crucial role in your success as a trader. We strongly urge that you use it for at-least one month. If it has not helped improve your trading profit in thirty days, then feel free to stop. But make sure to try it prior to deciding not to. It might be just the tool needed to push your trading to the next level towards becoming a successful trader.
Writing a Journal Example Template - FX Journal Sample
The following is an example excel trading spreadsheet journal template that a trader can use to create their own excel forex spreadsheet journal template for writing their own:
Date - Friday 22 August
Page 1
EURUSD - Sell Signal
Day
- Day Trading trend is short sell, RSI 33
- Volatility is high and the bollinger bands pointing downwards
- Price was retracing but down-trend is still intact and in place confirmed by RSI, market has resumed down direction
4 Hour Chart
Price is moving down indicated by MA indicator down crossover, RSI at 46 heading downwards, volatility is low.
H1 Chart
MA indicator are moving down, RSI at 34, volatility is medium & price is below middle bollinger band.
Enter sell trade transaction based on trend for the daily chart which is short, RSI indicator 33 and also all entry signals for H1 Chart have been met.
Take Profit - at 100 pips between support1 and support2
Profit by Market Close: +33 pips
Why Trade Was Profitable
1H- MA indicator for 1 hour heading down all day, MACD gave a sell trading signal after leaving overbought, RSI less than 50 & the price action direction on H1 was down, volatility was medium and bollinger bands were pointing down.
Day Chart - The daily MA indicator were crossing over to signal a long trend but was a non confirmation since the MACD showed short, RSI at 32, hence this was just a retracement, the trade was opened when the price started to come downward this was just a retracement.
H4 Chart - The retracement was already complete and the & the MA indicator cross-over trading strategy had already given a down crossover signal, RSI was heading down & MACD also gave a short signal.
Page 2
USD/CHF - Buy Trade Signal
Day
Trend is upward based on RSI at 65 & MAs are flat, Bollingers are wide pointing up, volatility is high.
4H
RSI at 50, stochastics leaving oversold, MA indicator crossover has given an upward trend crossover signal.
H1 Chart
MA indicator moving up, RSI at 64, stochastics going upwards
Enter buy trade based on daily chart & all buy long signals have been met
Profit at Market close +45 pips
Why Transaction Was Profitable
H1- MA for 1 Hour headed up all day, MACD gave a buy signal after coming up from oversold, RSI was above 50 all day, volatility high & bollinger bands going upwards.
Day Chart - the daily MACD was bullish, the RSI was at 68 heading upwards, price was retracing but had already started turning up, the price volatility was high with the bollinger bands moving upward.
4H - Ma had an upward crossover signal, the RSI was heading upwards, MACD indicator was above zero center line mark, volatility was low.
Page 3
GBPUSD - Sell Signal
Day
Day Trading trend is short, RSI is at 23, the market has resumed downwards trend after a retracement, big black Marubozu candlestick setup.
4H - Price has turned down after retracement, RSI trading indicator at 38, stochastics leaving overbought heading down and Moving Average Cross-over system has given a short sell signal heading down.
GDP for Britain came out worse than was expected, GBP Fundamentals and Technical Analysis = downward trend
Entry - Sell signal based on Day and all forex sell trading signals rules on the H1 have been met
Profit at close +35 pips
Why Trade Was Profitable
1H Chart - MA indicator were heading down all day in a steep manner, MACD had left overbought giving a sell signal all day, RSI stayed low at around 30, Fundamental trading indicators came out extremely bearish, volatility was high and bollinger bands were pointing down.
Day - The Daily MA indicator were to cross-over but because of the retracement, headed right down again with a big black candle(250 pips), MACD was bearish, RSI at 22 heading down and bollinger bands pointing down, volatility was high.
H4 Chart - 4 hours chart the MA had given a down cross-over signal, MACD was below the zero center line mark, RSI was below 50.
Page 4
USDJPY - Buy Trading Signal
Day
The day trend is upwards, RSI at 52, stochastics heading upward and Moving Average pointing sideways, the market has resumed upward direction after retracement.
4H
MAs going upwards, stochastics leaving over-sold region, RSI at 52
1H
MAs going up, RSI at 65, both stochastic heading upwards
Entry - Buy signal based on Daily & all buy signals rules on the H1 have been met
Profit at close +64 pips
Why Transaction Was Profitable
H1 Chart - Moving Averages were heading up all day, MACD gave a buy signal, RSI was above 50 volatility was high and bollinger bands were pointing upwards.
Day Trade - MACD was in bullish territory above the zero center line, RSI was below 50 but pointing upwards, the Moving Average were flat, bollinger bands were pointing upward and volatility was low.
4H Chart - on the 4 hour chart the moving averages had given a buy cross over signal, RSI at 51 after crossing above 50 centerline mark.
Profit at Market Close
EUR USD +33 Pips
USDCHF +45 Pips
GBP/USD +35 Pips
USDJPY +64 Pips
Total = 177 Pips
Why trades were profitable
Why trade transactions were profitable is because multiple time-frames analysis were used correctly & the direction of the price action was analyzed correctly by following the rules of my trade system as specified on the FX plan.
Forex Entry Rules in the 1 Hour timeframe had matched before opening of these trading orders
Fundamental Trading Indicators were also used to predict some moves.
In Short - Today I stuck to all the trading rules of my system
...............................................................................................................
Record of Excel Journal Entries Explained Using Examples
1.
EURJPY Sell Trade 13-December-2011
Trade opened EUR JPY Sell Trade Signal
Date: 12-13-2011
Time frame: 4 Hour Chart
Why Transaction Was Opened
- Both MAs were heading and moving downwards
- RSI is below 50 Level, hence the market is bearish
- MACD is moving towards Bearish Territory Region
- OBV has broken the upward trend line, therefore direction is downward
The price is also touching the downward trend line therefore this would be a good place which to sell the currency.
Closed
Closed by TakeProfit Order 300 Pips
Date: 01-02-2012
Why this trade was profitable
It was profitable because the risk-reward ratio of this setup was very high.
The trade went back to its downwards after touching the downwards trend-line.
The OBV indicator is a leading indicator & when it broke its upward trend-line it meant price was going to go downward.
After this leading signal all the signals turned to show a bearish momentum & a bearish market.
2.
EUR USD Sell Trade Signal - 13-December-2011
EURUSD Sell Signal
Date: 12-13-2011
Why Transaction was Opened
- Both of the MAs Moving Averages were heading downwards
- RSI is below 50 center line level
- MACD is heading downwards
- OBV indicator has broken its upwards trend line
Closed
Closed by Take-Profit 300 pips
Date - 01-05-2012
Why the transaction was profitable
All the rules of our trade system were followed before entering the short sell.
The long term price action direction of the EURUSD is downward like as displayed and shown by downwards trend-lines.
Technical Analysis in Forex Trading
There was a rally of the EURUSD which only went upto the previous resistance zone, a good place which to sell again. From the above diagram illustration the first trade has booked profit the second one is still continuing.
EURUSD Closed by TakeProfit Order
3.
GBPUSD Sell Signal - December-20-2011
Date: 20.12.2011
Trade Opened - GBP/USD Sell Signal
Time frame - 4 hour chart
Why Transaction Was Opened
- Both MAs are heading down
- RSI is below the 50 centerline mark
- MACD is moving down
- OBV has broken upward trend and the market now is bearish.
A downward trend-line can also be plotted on the price chart. This shows that rules of our system have been met & the market is bearish.
Take-Profit - 300 pips
Stop Loss - 100 pips
Take Profit Order Hit
Closed by tp order
Date - 29.12.2011
Why This Trade was Profitable:
All rules for the system were met before opening the trade transaction.
GBPUSD after hitting take-profit.
4.
GBPJPY Sell - December-22-2011
Date - 22-12-2012
Opened: GBPJPY Sell Signal
Time Frame: 4 hour chart time frame
Why the transaction was opened
- Both Moving averages heading down
- RSI below 50 center-line level
- MACD is heading down
- OBV has broken upwards trendline meaning price will follow soon.
Since volumes always precedes price the price will break the upwards trendline and start to move downwards. In addition the longer-term price direction is a downward.
Closed
Closed by takeprofit (300 pips)
Date - 01-02-2012
Why This trade was profitable
The longterm trend is a downwards.
All the rules of the trading system were followed before opening the trade position.
GBPJPY short sell closed after take-profit.
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