Importance of maintaining a trading journal

Trading in Forex can be overwhelming if you do not track your progress on markets. Most of the time, traders in Forex like to trade the market and they do want to know if they are making progress and having money in their account. You can think it is very easy and you can check if you are making progress by looking at your account balance. But you need to also change your strategy and develop your trading mindset with your progress. This is where traders who have recorded their trading history have benefited over the other traders.

trading journal

This article is going to help you greatly by telling you how much money you can make by tracking your progress in Forex. All professional traders track their progress in Forex and by doing it, they overcome the most difficult obstacle in Forex. If you want to know how to trade in Forex, you should track your record to see if you are really making any progress in your trading. If you are doing mistakes, it will also help you to identify and rectify your mistakes.

It tracks your trading and costs

Most traders only think about their profit in Forex. They overlook the important fact that they also need to track their costs in Forex. When you are placing a trade in Forex, your account does not become profitable. You have to wait for some time and get over the broker’s fee, which is commonly known as the spread. If you are making an only profit and only thinking of how much money you are making, you may not know that you are giving away more money in the market by losing your trades. Simply by following a trading journal, you can easily understand which signals are false in the trading platform.

This problem can be overcome by tracking your progress in Forex. When you know your spread and how much money you are losing in trades, you will see that you are not making great money in Forex, but a very minimum. Many traders have taken this career as their full-time profession and it is important for you to track your career progress in Forex. But do not only track your progress and success, you also need to look at your failed trades. Many traders in Forex fail in the market and do not analyze it. You need to analyze your fail trades and know what was wrong with them. It is a part of your tracking your trades in Forex.

Learn price action trading

Many traders are joining the online trading industry in every single day. But have you ever asked how many traders are able to make money? If you do some online research then you will be surprised to see that only 5% of the traders are making money. Though you can use many different trading systems yet we will tell you to learn price action signal. Price action trading is often considered the best way to trade the market. However, it might be a little bit hard for you to memorize all the reliable candlestick pattern but as long as you track your trading history you can easily learn from your mistake. Mistakes are always appreciated as long as you learn from them. Even the most successful traders polish their trading system by learning from their mistakes.

Maintaining a trading journal or keeping track of trades is very crucial. Every single trade is very vital for the Forex trader. A simple minor mistake can cost you a huge amount of loss in the Forex industry. So if you want to learn the art of trading and become a successful trader then it’s time for you to bring some positive changes. Start maintaining a disciplined life and use your rational logic to place your trade in favor of the market trend.