Trading Psychology – Five Usual Mistakes Traders Do In Keeping A Trading Journal

Posted by Finance Professional on December 30, 2010 under Forex Market News | Be the First to Comment

Keeping a trading journal is important when you want to develop your trading approach and psychology. Keep on reading this article to get to know about 5 usual mistakes that traders do in keeping the journal and how to correct them:

Mistake #1 – Fail in Keeping Trading Journal – I know it can sound unusual but many traders do not keep a trading journal. They consider it to be unnecessary, do not know how or think that it will add more troubles. Some traders are hesitant as for recording their trading losses.

Solution: Keeping a Trading Journal! Set a goal to make a notebook and enter your journal before you go to bad. Remove all the notions that are unnecessary and cause too much trouble. Make a trading journal. It is vital if you want to become a competent trader. And if you hesitate to look at your losses and mistakes, bear in mind that hiding from them will not help you to avoid them. You should understand first what goes wrong before it can be corrected.

Mistake #2 – Record Only Trades – though recording trades is significant, it is not enough. If all you have are the trades you are looking for, you do not have much valuable information because it does not help you to get better.

Solution: Try to understand why you took the trade. How was the market trading when you took the trade? If you add these details, it will help you to understand the conditions under which a trade will work versus when it is not likely to work.

Mistake #3 – Vital Market Data Are Not Recorded – Traders can overlook writing down data like the day’s close, low, high. But this information will help you to keep you staying in accordance with markets that you trade.

Solution: Keep track of your market by fixing the main information. Add vital notions that you stick to and general market statistics such as declining and advancing issues. After some time, you can be surprised at how well you start to choose on the fine distinctions of your market.

Mistake #4 – Vital Data About You Are Not Recorded – Understanding trading psychology is the main factor of trading. Just as trade patterns that set up on a regular basis, traders have patterns as well. It is significant to know this.

Solution: On every trade fix your feelings and thoughts. It is the best way to realize your personal trading psychology. Search for patterns in your actions. Do you constantly try to trade against a trading market? Are you worrying about good trades? Look to define and address your patterns.

Mistake #5 – Do Not Overlook the Review of the Journal – Some traders consider that if they jot down what occurred when trading today then that will be good enough. It is not. You should do more to get the most of the benefits offered by the trading journal.

Solution: Review your journal on a regular basis. So, you can do it every week. Regular reviews will help you to see where you can improve your trading; it will also help you track your progress. And this will add you more motivation.

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