Why is a Trading Diary Important?
Do you often forget about the mistakes that have occurred in your trading? Or do you prefer to ignore them? As a trader, recording every step in a trading diary can be a wise decision. In the world of trading, mistakes are part of the learning process. Recording and discussing them is not an action to be avoided but a step towards growing and developing as a better trader.
What Do I Do?
Personally, I am not too confident to publish all my trading records. However, I am consistent in keeping track of my trading activities. I record every position I take, target profit, stop loss, and pip gains. Sometimes, I complement these records with chart captures, especially if I take somewhat risky positions.
Forms of Trading Diary
There are various forms of trading diaries you can create. A trader friend of mine even diligently prints out charts on various time frames every week. He uses these charts as a reference if he encounters "difficult" market conditions. For example, candlestick patterns that he finds hard to predict.
Why is a Trading Diary Important?
- Position Recorder: Recording every position, both profit and loss, helps you track the trading decisions you've made.
- Learning from Mistakes: By remembering and discussing mistakes, you can learn valuable lessons to avoid repeating them in the future.
- Remembering Success: Just as important as remembering mistakes, recording your successes can be a source of encouragement and motivation during tough times.
Creating a trading diary is a wise decision. Remember that mistakes are part of the learning process. By recording every step, both mistakes and successes, you can grow as a better trader. Never be afraid to discuss mistakes, as they are the key to improvement and success in the trading world.
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