The traders are always trying to make a profit by using the leverage trading account. They are thinking about the big winners and trying aggressive methods to secure financial stability. But such an approach is more like gambling. Those who trade with emotions or aggressive strategies should never trade with real money. Being an Aussie citizen, you might have gain access to the top class broker like Saxo still you should think about the risk exposure. Trading the financial instrument involves a high level of risk. Without using a strategic approach, it’s really hard to change your life and develop your skills as a currency trader.
Read this article very carefully since it can change your life. Very few people understand the importance of having the best trading journal in the world. Instead of using other people journal use the tips mentioned in this article and create a unique journal based on your personality.
Know your trading style
As a new participant, you should focus on your trading style. Those who are trying to earn money by scalping the market should use simple trading journals so that they can keep track of the executed trades without having any timing issues. For instance, let’s say, your trading journal requires 20 different inputs for a single trade. So, if you execute 5 trades in a day, you have given 100 puts in your trading journal. This is a very time-consuming process and makes things a lot harder. Instead of creating such a complicated trading journal, try to come up with a simple journal that will contain the most important elements only.
Those who are trying to become a position trader and tend to carry the trade for more than 1 weeks, might create a complicated trading journal. All the important elements and impacts of the different news on the market while the trade is running should be recorded on the Forex trading journal. Try to include as many details as you can since it will help when it comes to the trade assessment process.
Use the paper-based journal
Using the paper-based journal gives you more control over the trade. If you want to make a consistent profit, focus on the long term goals. Try to use the paper-based journal in such a way so that you can write important details without spending too much time. Those who think the digital journal is the best way to reduce the time the associated problem is right to a certain extent. But when you start writing down the details of each trade, you give yourself the unique opportunity to assess the overall market condition. Unless you have more than 2 years of trading experience, its better not to use the digital journal.
Incorporate the risk profile
Your trading journal must contain the risk profile for your trading strategy. For instance, you must know how much money you are risking to earn a certain amount of money. Most of the time, the traders are trying to execute the orders with a 1:3+ risk to reward ratio. Before the trade hits the take profit they book a certain portion of the profit and kills the risk to reward ratio. This is an immature act, and you must solve this problem. If you include the risk profile in your trading journal, you won’t close any trade too early. You will be executing the orders based on proper money management. At the end of the month, assess your risk profile so that you can bring positive change to your trading system.
By now you have a clear idea to create the perfect trading journal. Instead of using a super complicated journal developed by the highly-trained traders, focus on your unique journal. And slowly bring change to the journal so that you can make a big profit without having any issues.