– Revised by James Stanley, November 24, 2021
A forex trading journal is a protocol of your trades that can help you refine your strategies based on learning from previous experiences. Just as a business owner tracks inventory, a trader should also maintain their closed positions.
Tenante a trading newspaper can be difficult at first, registering your trades can help answer some critical questions about your trading techniques. It can increase the consistency of your business, hold yourself accountable, and improve your technique overall. In this piece we will explore what you need to know about journaling by providing the following:
- Forex trading journal Excel template
- Tips for finding the journaling method that suits you
- Tips on the ideal forex trading workflow.
Forex Trading Journal Excel
Screenshot showing a template about a forex trading journal
As in Excel’s example of a forex trading journal, your journal could contain information such as the currency pair traded, size of the trade, whether your position is long or short, the date of the trade, your persuasion level, whether you used it. a fundamental or technical strategy, the reward to risk ratio, point movement, and whether the trade was successful or not.
You may also want to include details such as the entry price, stop price and price tag, as well as lots traded. The more data you keep, the easier it will be to evaluate your past trades at a later date.
Also, be sure to include a space to add notes in your journal. Traders using multiple entry techniques will want to track things like chart time frames, indicators used, market conditions (range, trend, breakout) and any other information that leads to a business decision.
With journals like the one above, over time the trader will be able to identify traits of winning or losing trades.
Journalistic Approaches From Expert Analysts
Tyler Shouts, Expert Currency Strategist
Tyler has been trading since 2008 with a focus on FX, Options, ETFs and Commodity Future.
Tyler is typical business journal entry there are a few lines that include:
- A review of the risk management / position size strategy hired
- La underlying environment (trending or interval-limited, and volatility metrics).
He also includes notes on why an entry order should be placed and a stop placed at the point that stock repurchase is minimized and his technical views changes.
‘I often reduce my trading size so that I can stay in the market longer or until the technical bias is canceled, ‘he adds.‘The following focuses on what types of currency pairs best respond to the strategy currently in use.‘
James Stanley, Currency Strategist at DailyFX
James has been trading since 1999 and focuses on equity indices and ETFs along with forex.
James keeps a ledger rather than a journal. He tries to update it once a week with trades put in since the last update. “I keep everything in a percentage format so I can make comparisons from apples to apples, from stocks to options to FX,” he says.
“As I fill this in, I can see trends as they happen, mostly focusing on P&L, and if something goes wrong, I usually just think about it for a day or two while I come up with. Some kind of solution. ‘
As for considerations for improvement during casualties, James considers how aggressive or conservative he wants to be. ‘If I hit a bad sequence, the answer is usually just to withdraw the accelerator, smaller sizes, less leverage, less but more selectable entries.
‘The polar opposite of that is being too conservative, and I can usually catch that while it’s happening, so I don’t often have to encourage myself to get more. aggressive. ‘
This brief understanding of our analysts ’journalistic and business workflows may or may not resonate with your own. There is no exact method, but there are a range of approaches listed below that can be tested.
Find the Journal Method That Suits You
Finding the journaling method that suits you will take trial and error, and there are a few approaches. Either you will keep your business magazine private and review it on your own, or you can allow other merchants to view it and give comments. Both methods are effective and will help you take responsibility.
If you’re going the personal journaling path, it’s probably easiest to keep your thoughts and screenshots in a Word document (although a physical notebook might work to simply jot down your thoughts).
For a public journal, you’ll probably want to record your business and thoughts on an online blog or forum. This will allow traders from anywhere in the world to see your trades win, lose or row.
Whether you review your journal yourself or allow people to review it online, this gives you an extra incentive to put clear, valid trades on your account and make it difficult to deviate from your strategy.
You will know in the back of your mind that you will have to face your decisions later in your journal and may have to face others if your journal is public. This will help you become more aware of times when you let emotions dictate your decisions rather than the logic of your strategy or when you decide to “create” and put up a rogue business with no strong basis for it.
It’s good to have responsibility. Many traders may deceive themselves into thinking that they are making rational business decisions only to find out later that they have not followed their strategy at all.
Top Forex Trading Tips: Journal and Your Trading Workflow
The workflow for a business owner should involve a combination of scanning the letters and reviewing the news, entering and managing businesses, and journaling the business at the end (and possibly beginning) of the process.
Take a look at the opportunities available in the market, whether it be identifying technical diagram patterns, or acting fundamental factors such as news. At this point, you may want to record the possible pairs to trade and your thought process about choosing them.
Find an opportunity
Identify an entry, mark your diagram and note on your diagram the reason for the entry.
Once you place the trade, add your profit targets and take profits. At this point, you’ll probably be too busy from the business to a newspaper.
Business management at this point may include a pyramid scheme or multiple profit objectives. Managing the business requires your full attention, so your journal may be limited to screenshots.
Review and Magazine the Business
Now that the trade is closed, you can work on a journal, evaluating your screenshots and any notes you took to analyze the trades, find out where you may have made a mistake, and think about what you need to do to improve.
Take a look at our resources on forex trading tips
For more information on forex trading tips, check out our forex live news section. Also, of course download the forex trading journal template from Page 5 of the Building Confidence in Business a guide that is accessible via the link above.