Why should one maintain a trading diary?

Taking up Forex trading in Malaysia is a business that is lucrative and full of scope for profits. However, several traders have tasted varying degrees of success over the years. To be consistently successful in the industry, traders must learn to look for signs of risks and read the patterns that lead to success or failure. 

But reading the chart pattern only reveals the trend that the market has taken in the past. To bring success to online trading, traders need to read Forex trading pattern and discern the places where one has tasted success or failure. How can this be done? By maintaining a diary or journal! 

Why should one have a trading diary?

Keeping track of every trade ever participated in is a good way of revisiting one’s past online trading activity and looking for areas of improvement. It helps traders identify and discern patterns in their trading activity and analyze the scope for improvement. 

- During a failure, a journal can help traders retrace their wrong moves and identify where they went wrong.

- During success, a journal can help Forex traders identify what is working for them and improve upon the aspect.

What are the attributes of a good trading diary?

1) The date and time when the decision to open a particular position

2) Reason that influenced the decision

3) The market entry strategy.

4) The Forex exchange rate at the time of the entry.

5) The fixed profit/loss.

6) Stop-loss limit

7) Reason for closing the order

8) The nature of outcome

9) Additional comments.

Studying the results of a diary

Evaluating one’s journal is sure to boost success as a trader. This helps a person identify where he/she would need to improve upon. Over time, this will improve one’s performance by minimizing blunders.

Showing one’s Forex diary to an expert broker can help Forex traders gain more insights into their own way of trading and dissect it to find scope for improvement. For such services, partnering with a reputed online Forex trading company in Malaysia like WesternFX can be highly useful.