Is a Trading Journal Necessary?
A trading journal in trading involves recording the behaviors, actions, and trading activities of a trader on a daily, weekly, or monthly basis. This practice helps traders gradually learn from their mistakes and losses, and maximize actions that lead to success.
Keeping and reviewing a trading journal is similar to:
• Analyzing Observations: Observing and reviewing whether your analytical skills are aligned, and if you have broken any discipline.
• Observing Psychology: Reviewing your behaviors after entering a trade, whether you managed your capital, and how your psychological state was before and after entering a trade.
• Observing Ego: Observing thoughts of greed and fear when a trade is active, how excited or fearful you are, the intensity and level of fear, and the volume of the trade.
Regularly observing bad trading habits is like daily practice to eliminate bad habits that do not yield good trading results. This helps individuals gradually improve their good trading behaviors in the future. It is a process of self-discipline and self-correction.
Therefore, daily recording of trading behaviors that lead to poor results, as well as good results, is essential. By observing these records, you can eliminate repeated behaviors that lead to bad results and maximize behaviors that lead to good results. Over time, bad trading habits are eliminated, helping traders form good trading habits in their mindset.
