The art of successful trading, no matter how big the stocks, is a rather big, rather complicated and at times rather stressful process. The world of trading has been changing constantly over the past several years, thanks in most part to the introduction of online trading. However, if there is one thing that has stayed constant in the trading realm, it is the use of a trading journal.
Trading journals are simple organizational tools that have been helping the world’s most successful traders keep track of their trades. If you ask some of the most revered traders, chances are they will tell you that they keep a detailed trading journal. However, in today’s market, fewer and fewer traders are maintaining their own journals, or they aren’t using them efficiently.
For some, the idea of keeping a journal in a world where everything has become automated seems like a waste of time. Others may not believe in the power of a trading journal, and may think they can find success on their own without keeping track of everything.
However, if you are struggling with your own trading efforts and want to revamp them in the New Year, then a trading journal is the must-have tool that you need to focus on to help with your organization and your success as a trader. If you haven’t considered a trading journal yet, or feel as though you aren’t using your journal properly, here is some insight on the power and importance of a quality trading journal.A
High-Performers Most Trusted Tool
There are many people that live by the old adage of learning by doing. Maybe there are a few situations where this can be applicable, but it is not an adage that you should apply when it comes to your money. You need to be able to track what you are doing so that you can improve on it.
You can convince yourself that you are doing alright with your trades as long as your account doesn’t get too low, but if you aren’t actually looking at the data, you will have no idea where your money is going on how you are actually performing. It is easy so easy to convince yourself everything is fine if you just don’t look at the data. Trading journals help you learn and give you a harsh dose of reality regarding what is going on with your money and your trades.
Your Guide to Making a Plan
One of the best things about trading journals is that they keep traders organized, and they help them develop a real, set actionable plan. If you mindlessly make trades and don’t really keep yourself organized, you are never going to learn or get better, no matter how much time you spend doing it. The trading journal will help you get to know yourself better as a trader and it will help you stay organized with the decisions you are making.
If you want to separate yourself form the back and from other amateur traders, then a trading journal is the way to do it.
A Lesson in Review
No matter what you are trying to succeed in, whether it is trading, running, playing the piano or anything in between, in order to be successful you need to be able to keep track of your performance. Perhaps it’s recording your time on a certain run, watching videos after a game or listening to the playback when you perform a song. Everyone in a competitive sport, field or competition has some way to track their success so they can go back, review and tweak as necessary.
This is all part of training and all part of perfecting your craft, no matter what your craft is. A trading journal is a tool that can let you do this. Just as football players obsessively watch tape of themselves and of others before a big game, you need to review your performance as a trader before you make trades, so you can take a look at your past performance and make changes based on the data that you have.
If you are diligent about writing down your experiences in your trading journal and then going back and actually reviewing that information regularly, you are going to start seeing some major changes in your life and in your trading success.
If you haven’t been using a trading journal yet, or if you have become lax with your trading journal efforts, then there is no better time than the present to consider making a change and to start utilizing a detailed trading journal to your advantage.