A trade journal is a record of the trading activities of a trader. This is essential because traders should know how accurately the trading strategy is being implemented. As we have seen before, the forex market is linked to many risks and uncertainty. There is, therefore, a fear of a trader losing his money. On the other hand, when traders make a lot of money within a short time, they become greedy.
Fear and covetousness are an integral feature of a forex market that forces traders to decide incorrectly. The trading journal keeps track of past trading activities so that readers can see how trade decisions are taken.
A trade journal is a crucial element in forex trading, followed by most trade professionals. The creation of a trade journal, therefore, requires little qualification. You can do this with Microsoft Excel, Google sheet, or through trading report extraction on the MT4 or MT5 trading platform.
Use of spreadsheet for the trade journal
You should have a little knowledge of the worksheet to create a trading journal using a tablet. You must therefore use the worksheet blocks for various information relating to trading. For instance, the Forex trade sheet journal should contain the date of trading, the lot size of a trade, the entry and exit point, and the outcome. You may find the entire process annoying, but it is essential if you want to judge yourself.
The date would be that trading date of the year. The date is essential because, later on, it is crucial to justify your performance. You can write the currency pair name and position on the next station, whether it’s a purchase or a sale. The following section is important because it is an element of risk management. It would be helpful if you did not take more than 2 percent of risk per business, and you have to say how much trouble you received. You can write your entry and exit in the next section when the trade is finished. Finally, whether it’s a profit or a loss, you can write your trading result’s monetary value.
You need to check your trading activity after a week or a month on the MT4 or MT5 platform. You can therefore measure how you improve your trading by watching your trading diary. Also, if you lose, you can determine the reason for the loss. You can work with it to ensure that this doesn’t happen again if you find the root cause.
As a forex trader, a trading system that matches your personality needs to be established. It would also help if you practiced a lot to get to know the system. There are some weaknesses in every trading system, and you must identify them to mitigate the overall loss.
Therefore, before choosing a trading strategy, your system needs to be adequately tested before it is implemented in your chart. Later, when you trade with real money, you will face fear and greed that isn’t the demo account. To see how much psychological pressure you face, you have to know the result of your trade. This makes the forex trading journal a forex trader very important.
You need to mitigate your stress and psychological pressures if you want to expand your trading career in forex trading or manage other people’s resources. The best way to assess yourself is through the Forex trading journal. Therefore, the Forex trading journal is essential and a profitable trading strategy and a reliable money management system.