When I first started understanding trading, I often got carried away by emotions. I made a trade, earned — I was happy, but didn't analyze why it happened. I lost — it was frustrating, but I also didn't explore the reasons. In the end, everything was chaotic. That's when I learned about the trading journal, which helps to bring order to trading.
A trading journal is a regular list or table where you record each of your trades: what you bought, why, what the result was, and what could have been done better.
Why is this important?
1. Control and discipline. When you record trades, you analyze your actions more rather than just acting randomly.
2. Finding mistakes. The journal helps to understand which strategies work and which do not.
3. Development. The more you analyze your actions, the faster you learn.
What to record in the journal?
Here are the main things to include:
1. Date and time of the trade. This helps to understand how the market behaved at certain moments.
2. Instrument. For example, BTC/USDT or ETH/USDT.
3. Trade direction. Long (buy) or short (sell).
4. Entry and exit prices. At what price you bought and sold.
5. Position size. How much you invested in the trade.
6. Result. How much you earned or lost (in percentages or money).
7. Why I opened the trade. This is important to understand your motives: technical analysis, news, or intuition.
8. Emotions. How you felt: confidently, nervously, or randomly?
9. Conclusions. What went well, and what needs to be improved?
Example of a journal entry
Date: December 26, 2024
Instrument: BTC/USDT
Trade type: Long
Entry price: $98,000
Exit price: $99,000
Result: +3% profit
Reason for the trade: There was good support at the level of $98,000, I saw a signal for growth.
Emotions: I felt confident but was a bit afraid of a sudden reversal.
Conclusion: Everything went according to plan, but I should have set a clearer stop-loss.
How to keep a trading journal?
1. Use a convenient tool. This can be Excel, Google Sheets, or a regular notebook. The main thing is that you feel comfortable. There are programs and applications.
2. Record everything immediately. Don't postpone filling out the journal, otherwise you'll forget the details.
3. Analyze. Once a week or month, review the entries to understand which mistakes are recurring and what you are doing right.
Where to find templates?
If you don't want to create a journal from scratch, you can find ready-made templates online. Here are some useful things:
- Simple tables with columns for each trade.
- Templates that include charts and visual analysis (for example, through Google Sheets).
- Mobile apps for keeping a journal (there are quite a few of them now).
My conclusion
A trading journal is like a personal diary, but for trading. It helps to understand your strengths and weaknesses, remove emotions from trading, and grow as a trader. Of course, it requires discipline, but the result is worth it. If you want to take trading seriously, start keeping a journal today.
#Traiding #currency #Binance $BTC