You write down everything you want and do before, during, and after the transaction.

Trading is a performance capability, no matter what trading style and method you use. The result is determined by your ability and luck to analyze the market environment, create a plan or method, and execute the plan.

There are many variables leading to success, so you have to write down everything to judge your strengths and weaknesses.

For traders, this means recording:

Who are you and your motivation for trading. To find the right trading method that works for you, you need to know who you are, your lifestyle, and why you do things.

Market views and philosophy. How do you understand the structured market, how to make decisions that are actions, and manage the risks of your account.

Market observation. In the market, every day is different, which does not mean that you have no definite “trends” and “behaviors” to use. With careful and continuous observation, you can find these “trends” and adjust your strategy based on them. Similarly, if the environment changes, you have to keep up with the situation and change accordingly.

Trading errors and missed opportunities. Mistakes and missed opportunities can affect your success as severely as the market deviates from you. Closing trades too early, not adopting orthodox settings, entering the market at the wrong entry level or point, etc., should be recorded in your log to avoid making the same mistake in the future.

Performance data. Your trading performance is mostly reflected in the data. It truly reflects your performance. These data will not lie. Sometimes reality can stimulate you.

All told you, it sounds like a lot. So in order to make it easier for you to start, here are the few least things you should remember. “Must include” elements in the transaction log.

Before publishing our list, we want to point out that it should be included in the trading plan.

We simply provide you with this list so that you can understand what you know should be included in the trading plan, but you don’t have to follow this list exactly.

The following are the 5 elements “must be included” in the transaction log:

  1. Potential trading area
  2. Entry trigger
  3. Position size
  4. Transaction management rules
  5. Transaction review

Again, it depends on you.

It is your transaction log.

Just like your character in Warcraft, you have to make a transaction log as you see fit.

Remember, you are the one who will benefit from the log. Therefore, write down what you think will benefit you most.

Potential trading area
Every transaction you make should be justified. This is the so-called logic or basic principle. You are not a savage or a gambler, are you?

Why should you choose to enter this area? This area is determined by the set detection method you wrote down in the trading plan, no matter what method you use. For example, the crossover area of ​​two moving averages, or price resistance at the Fibonacci retracement level.

Your trading area is between the current price and the entry price.

We strongly recommend that you take a screenshot of this area on the chart. Turn screenshots into your habit.

When you review the transaction, you can intuitively see what changes have occurred, which will help you to practice the actual use of chart trading, to find possible opportunities or avoid traps.

This will help you write down your reasons for entering the market, or make you aware of things you have overlooked.

The potential trading area is where you think you will have an advantage, that is, where you have a high probability of success and a favorable profit/risk ratio. You must decide for yourself how you want to achieve this requirement.

When you sit on the chair in front of the screen, you are “ready” to trade. The potential trading area is where your “target” is.

This will allow you to avoid unplanned and random decisions when trading.