Beginners and experts share a secret in the world of Forex investments, or the trading diary: What it is? How it works?
What is the online trading diary?
As the experts says, a good trader must have a basic training in technical and fundamental analysis, as well as understand something about finance and economy, have a PC with Internet connection, strong nerves and a great desire to reach the goal, but without being beaten by the possible defeat (provided you are careful with the amount to be invested). But in reality there is a secret of traders called a newspaper or trading diary, an apparently very simple tool, but which is very useful for earning money quickly with currencies and CFDs, contracts for difference.
How do you create a trading journal and what is it? It can be a notebook, an agenda or even a notepad or, for the most technological, a table in Excel in which you will have to minutely annotate all the trading operations, the investments made successful and those that unfortunately have become more or less substantial losses. The aim of all this is to analyze and understand the various strategies that are useful for pursuing the objective and those that are not very effective. Beware, because it is not a sort of magic book that can make money from home faster than not write it, but it is an element that can be useful, especially if you find more negative transactions than in the positive direction.
How to create a trading diary
Obviously a trading diary to be effective will have the right data. First of all, it is necessary to write the date and time of opening and closing position, the object of it (cryptocurrencies, currency pairs, indices etc.), the size of the lot and the direction of the position, i.e. sale or purchase. Below are the stop and limit data, which means to mark the placed orders, the unit of time used on the graphs and the reason why that particular position was chosen and why it was closed.
Finally, the result of the game, or if it is a win, then gain or loss of capital or a part of it. The trading journal is called a diary because you can write notes, thoughts and useful information as long as they are inherent to trading, obviously. It is strictly forbidden to write something other than financial and financial figures and words, otherwise we will show that everything is a game rather than a serious activity and not to be taken lightly, since it is real money.
Use the trading journal correctly
To correctly interpret this tool, it would be really ideal to group each winning transaction and those that did not go well, perhaps by making a monthly report. The reason is simple: find the points in common between the various operations and see at a glance what is wrong. For example, you can see how a technical indicator can influence lost operations, so you will try to ignore it. Of course, should it be present for those that have been successful, then it means that you have to use it more often.
You will also notice the times when there will be more winning transactions, a sign that even the time can affect the gain of a trader. This is how we develop the most effective plans and strategies for an almost secure gain, even if the trading activity, we remember, is considered high risk because you can easily lose all the money invested. Only by testing different combinations, applying their basic knowledge and training first by using a DEMO account can you maximize your earnings and refine your trading style.