Trade Forex Trading

Example of How Do You Write a Journal? - Journal Meaning

Track all your trades in a trading journal. By following this simple, easy to follow tip, you can easily improve your results. Here is how you do it:

Step 1 - Write down WHY you are making a trade PRIOR TO opening a trade.

Prior to opening a trade, write in a trading journal the explanations why you're making the transaction. It does not have be long; it doesn't even have to be in compete sentences. Just write a few key explanations why you're making this trade.

Be honest with this journal. If you are honest, it will prevent you from making the biggest mistakes in your trading. If you see that you are making the trade due to and because of anything other than a sound Indices strategy. DO NOT MAKE THE TRADE TRANSACTION!

If you as the trader make a losing Index trade, do not open another trade transaction immediately so that to make profits to neutralize the losses you have made, this is known as revenge Indices trading, do not revenge against the market. Shut off the computer, walk away, and take a cold shower. Remember that you will never lose money that you don't put in. A winning Index strategy isn't only about how much you win, but how much you do not lose.

Step 2 - Write down how you will exit the trade transaction PRIOR TO making the trade transaction.

Do not get trapped with a great entry Stock Indices strategy without an exit trading strategy. Your strategy should have both great entry and exit strategies. One is use-less without the other.

But you ask, Why bother? I know my Index exit strategy. Why do I have to write it?

Well, reason/explanation is this: people are at best irrational, impulsive, and emotional creatures. If you have your exit strategy written, you have a frame of reference when you get out of a trade position. You'll refer to your journal BEFORE exiting a trade. If you're closing a position for any reason other than your original and initial Indices exit strategy, you must ask yourself why?

Your trading journal will save you more money than you can imagine. It will prevent and stop you from making impulsive moves, which is usually why people lose money in Index.

Step 3 - Write down why you exited the trade position.

This should be the same reason that you wrote down in step 2. If it is not, it is up to you to analyze & interpret it. The most regular reason/explanation why traders deviate from their strategy is lack of discipline. Your Index journal will be looking back at you & showing you glaring evidence of precisely why you're not a winning Indices trader.

Step 4 - How to Analyze and Analyze the trading results

You must learn from your mistakes in Indices. This is the best way for anyone to improve their profits. Everybody makes mistakes, but the great Indices traders are able to learn from them and not repeat.

And the best way to learn from your mistakes is to document them in a trading journal. A few years down the road, you can still look back and realize that you are still making the same errors that you were when you first started trading Indices online.

This info can not be found in any book or seminar. Your Index journal is personal & is uniquely you. Your personality will determine the type of Indices trader you will become, and also will determine the type of mistakes you will make.

Not only does your journal highlight your weaknesses, it will reveal the trading transaction that are the most lucrative. After a little while you will see the type of Indices setups that make you as a trader most equity, & a trading pattern will emerge. Do-not let this info on your trade journal go to waste.

You should do every effort to understand why those trade positions went well & try to replicate it as often as possible. Profitable traders know their strengths and weaknesses. They play on their strengths & try to minimize their weakness.

Do not get lazy and forget to write down in your trading journal. Documenting your thought process is the fastest & surest way to get better at Index trading. Do this consistently, and you'll learn more about your habits than you can imagine.

Your trading goal is to identify and break bad habits soon as possible. If you as a trader realize that you always cling on to a losing Index trade position too long, you should do everything in your power to counter this from happening and occurring again.

Summary

Your Index journal is gold. It contains a wealth of info that will play a vital and crucial role in your success as a trader.

We strongly urge that you use it for at least 1 month. If it has not helped improve your profits in 30 days, then feel free to stop.

But make sure to try it prior to deciding not to. It may be just the tool needed to push your trading to the next level to becoming a successful Indices trader.

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