Do we really need a trading journal?
It might be strange to see a ledger at someone desk as we are so used to rely on our smartphones and computers, but there comes the time and place when and where you absolutely need to have a ledger and a pen by your side.
And trading is just one of those examples.
Yes. The time has come for us to talk about the importance of a trading journal and importance of nor forgetting about it.
First we need to explain to ourselves why in the era where all of your trading history is laid bare in front of you in your trading account do we need a trading journal?
Imagine this – you have been trading with one account only for 3 years. And suddenly you need the info from you first years of trading. You go into the history folder of your account and see numbers. Pure numbers with no explanation of your actions.
That doesn’t sound very helpful now, does it?
And even though it might seem unnecessary now, I can assure you – writing down not only your trades with all of the numbers but your motivation, your mood and all of your thoughts on the matter is going to help you a lot in the future.
For example, you are seeing that EUR/USD is going higher and higher. But for some reason you do not trust the chart as you read a very ominous piece of news just a couple of hours before. You put it all down and in an hour you see the chart plunging. That’s right. Your intuition saved you a lot of pips.
And in case you wrote it all down the next time might not be so hard as you are going to have a reminder right in front of your eyes – sometimes it pays to have a good intuition and a good sense to write your hunch down.
That is exalt why you need a ledger – trading is not pure numbers and outcomes. Trading is emotions, feelings, intuition and changes. And for you to keep trach of all of them you need a nifty kittle helper – a trading journal.
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