Tuesday, August 22, 2006

Why trading diary is important to improve your forex trading

Do you have a habit to write trading diaries? I think it's important for a trader to write down their trading records. Most traders spend all their time for searching news of the market, looking at the charts they planning to trade. Of course, all of these are important for your trading. Recording your trading transactions is just as important.

Traders always lost himself in mass of trading records. What currency pair did you trade? Why did you place these orders? Are all of these trading decisions according to your strategies, if you really have some? In order to answer all of these questions, mark up all your trading records in a diary.

What should it contain?

  • Currency pairs
  • Buy/sell date and price
  • profit/loss
  • Entry strategy
  • Exit Strategy
  • Comments
You can review the results of your trading by the end of every week or month and benefit from this good habit. This method is key to improving your trading skills.

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