In each of your transactions, always record the following details: why you entered the market, how you exited the market, and why that was the case.
Sustained successful transactions consist of three elements:
- Have and execute a good trading plan;
- A good trading system is included in the trading plan;
- Review and improve transaction performance and plans.
Every trader should keep a record of the transaction log and focus on these elements.
The transaction log records all your transaction activities. The purpose of logging is to monitor the performance of the trading system and your ability to adhere to the execution of the trading plan.
Compared with traders failing to apply trading correctly, a bad trading system is not the main reason for poor trading performance. Then follow the trading plan. The transaction log ensures that you can do that.
The transaction log provides a tool for traders who really want to make money to help them evaluate themselves objectively.
The quality of the log depends on the content recorded in it. If you cannot accurately track past transactions, it is difficult to judge transaction performance.
Start recording the transaction log. This requires constant effort, not just to complete a task. Be comprehensive and true. Don’t show a complete self because you fail to record everything.
Learning to record and maintain a transaction log will make you more disciplined. Not only that, when you review your trading in a month, we guarantee that you will understand your and your own trading psychology.
You can clearly understand what you are good at, what you are not good at, and what is the best trading method for you. No teacher, book, video or seminar can teach you these things. Only after experiencing these can you become a successful trader.
In order to strengthen your trading skills, you must have the determination to keep a trading log.
Here are the final suggestions that will help you keep track of your transaction log:
Start logging before the transaction begins, and end the logging after the transaction ends.
Write down everything. Don’t miss it. honest. If you intend to play the tiebreaker moment during the trade and therefore forgot to leave, write this down and explain why.
Pay attention to your emotions. Make sure you note your emotional changes.
Make sure that your log includes observations of yourself, your transactions and the foreign exchange market. We found that the transaction log usually focuses on self-analysis and has very little record of market observation. Take screenshots of intraday trading charts and write your comments on them. Record the pattern you are looking for. In a few months you will find that these patterns have really emerged. The transaction log is a learning tool as well as a good mechanism to train your eyes to find the transaction settings you want.
It is not silly to record anything in your log. Write it down. Write down whether you missed the deal because you were watching a new TV series, because you were playing Warcraft, or because you were chatting with your sweetheart. Write down everything.