Write a log?
Isn’t that only done when the stupid high school girl is infatuated with the stupid high school boy?
Well, not necessarily… High school girls write diaries.
The trader records the transaction log. Two different things! Figure it out!
For performance or goal-oriented traders, keeping a log is a very important thing. The key is that it can help you measure, track, and improve your performance.
World-class athletes keep journals to help them become higher, faster and stronger in track and field. The scientist keeps a diary for new discoveries. Traders keep journals to make money.
To make money simply means to be principled and consistent. The most important thing is to be able to make a profit.
A principled trader is a profitable trader. Persisting in recording transaction logs is the first step in establishing principles.
It sounds simple, but it will be difficult to get started. In fact, many traders give up logging after a period of time and rely on the recording of transactions provided by brokers.
The record or transaction history provided by the broker can provide you with a small amount of information, but it cannot tell you why you entered/exited the market. This will not help you in the next transaction. zero. no. No.
The trading log is not just about keeping track of your entry and exit prices and trading hours. The transaction log helps you improve your skills and master your trading philosophy.
More precisely, it is related to the mood swings before, during and after your transaction.
For example, you do long USD/JPY trading method. But your instinct tells you that this transaction will not succeed. But you remind yourself, “I don’t think this transaction will work. But I want to follow my trading plan, so I want to trade.”
Halfway through the transaction, the price is only 3 pips from the stop loss you set, and you think, “Oh my God. The transaction doesn’t look very good. I know. Why don’t I believe my instincts? I really am A fool! I’m going to be damaged! I’m going to leave immediately.”
You decide to end the transaction.
After a while, the price points straight to your target price. If you remain in the transaction, you can make a lot of money.
This is why you have to keep a transaction log. This is a classic case that happened to many traders.
We failed to stay in the transaction. We failed to follow the transaction plan. More importantly, we cannot control our emotions in trading!
If you keep trading like that and you don’t keep a transaction log, your trading account will be zero before you realize your mistake.
Five reasons to keep a good transaction record
Most expert traders keep a transaction log and review the contents from time to time.
Do you know what most expert traders are? Although some of them do not admit this…
They are professional! They are rich. They have cars. They have clothes. They have ice. We may be a bit exaggerated, but only a little bit.
In addition to bringing you to a professional level, journaling has other benefits…
Position you and your life situation
Move towards the goals you set in your trading plan
Identify your strengths and weaknesses in dealing with stress
Provide self-training and improvement methods
The last sentence is the most important, because every visitor of Global Forex Network and Wall Street traders take a different path. Not everyone has a master’s or doctorate degree in mathematics, computer science, financial engineering, or other disciplines, and then enters a financial institution or a real estate trading agency.
We are all ordinary people, self-study at home or where we can find internet connection. This means that we have to learn how to trade from the beginning and how to form our own trading methods.
Fortunately, thanks to the Internet and trading forums, we can learn and meet like-minded people, whether they are novices or veterans, which can help us shorten the learning curve. Even so, most of us have difficulty in accessing the opportunity to quickly and effectively learn trading examples and techniques: have a coach or mentor.
A coach or mentor can guide you through every step, point out your mistakes, find out where you are doing well, and let you follow principles and have a stable performance. It is difficult for new traders to meet competent mentors, so we are looking for the best alternative: self-teaching through the trading log.
A well-kept, detailed transaction log is as good as having a coach watching you behind you and teaching you. It may seem boring and a waste of time to keep a transaction log, but a trader can learn more by reviewing a transaction log than reading a book and attending a seminar.
After a period of time, the volume of the transaction log will increase. If you record everything that happened during the transaction (psychology, market environment, system maintenance tools, etc.), you can learn important lessons from it, such as:
Those news events should be avoided
What should be the risk of each transaction
When should you enter and leave
In addition, whether you can persist in keeping the transaction log will indicate whether you can succeed in the transaction.