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  • Writer's pictureVasily Trader

Why Do You Need a Trading Journal? 📝

Updated: Feb 3, 2022

Hey traders,

📖 Trading Journal is a crucial element in your trading education.

Even though the majority tends to neglect it, in fact, it is considered to be the essential part of a daily routine of a professional trader.

In this post, we will discuss why you should keep a trading journal & how it enhances your trading performance.

Let's start with the obvious:

✍️ Trading journal is applied for recording your trading positions:

winning and losing ones.

With that, you can monitor your current performance, identify the mistakes that were made and examine your decisions.

❌ Analyzing the errors you learn your weaknesses & the situations when it is preferable not to trade. You adjust your trading strategy accordingly in order to avoid similar mistakes in future.

💪 Examining the winning trades you learn about your strengths.

You identify the trading instruments, the trading setups where your strategy reaches the highest accuracy.

⚖️ Working with the numbers you can measure your investing exposure and calculate your account drawdowns. You can analyze your losing streaks & your long-term/mid-term/short-term account statistics.

📈 Analyzing the figures you can measure your progress over time by comparing your current results with the old ones.

😡 Keeping the record of your emotions, you can measure & quantify the psychological element of your trading. You may calculate the percentage of emotional decisions being made and their effect.

🌟 Consistent journaling makes you disciplined. It teaches you to strictly follow the rules of your trading plan & constantly learn from your mistakes in order to hasten the path towards a more disciplined and profitable trading career.

A trading journal should be simple and tailored to your specific trading style and the goals you would like to achieve.

I hope that my words will inspire you to keep a trading journal!

Do you have the one already?


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