Besides helping you in your journey to baller status, there are other personal benefits to journaling…
- Defining yourself and your situation in life
- Keeping progress of your goals you’ve set in your Trading Plan
- Clarifying your weaknesses and strengths in your ability to perform and handle the pressure
- Providing a way to self-coach and improve on your own
The most important bullet point is undoubtedly the last one because hardly no new visitor to Forexinvestindo.com follows the typical Wall Street trader’s path.
Not everyone who earns a Master’s or Ph.D. in math, computer science, financial engineering, or another subject goes on to work for a major financial institution or a proprietary trading company.
All of us are “average Joes” who learn from home or anywhere there is an internet connection. This implies that we learn to trade from start and create our own strategies.
Thankfully, we can learn from and connect with other like-minded people, both new and experienced, thanks to the internet and forex trading forums, which helps to reduce that learning curve.
Even so, the majority of us lack access to a coach or mentor, an essential resource for mastering any work or skill quickly and effectively.
Every step of the way, a coach or mentor is there to help you, pointing out your errors, praising your successes, and keeping you disciplined and responsible for your work.
For most beginner traders, finding a mentor of any caliber is difficult, so the next best option is to tutor oneself by keeping a trading journal.
When it comes to learning those lessons, keeping a thorough, well-organized forex trading log can be almost as beneficial as having a coach watching over your shoulder.
A forex trader can frequently learn more by evaluating their own trades than from reading a book or even attending a seminar. Heck, keeping a trading journal may seem tedious and time-consuming.
Your diary will develop together with you over time, and if you keep thorough records on every aspect of your forex trading (including psychological concerns, the market environment, system changes, etc.), it can aid you in realizing crucial lessons like:
- What news event should be avoided?
- How much more or less you need to risk per trade?
Also, how disciplined you are with your trading journal will be a great predictor of your overall forex trading success down the road.