Is trading journals worth it?
Is trading journals worth it?
I came across an article a few days ago. But, I can’t trace it back to share the link here with you. But, some points that I can recollect from that article are as follows.
People trade with their emotions: they have an initial specific amount to trade but, getting on to the exchange they change their mind and trade higher amounts which results in big losses.
So under the article, I could remember points like writing down every action you’ve made while trading. Stuff like, I lost xx amount of money today, made x amount of profits today.
Putting these activities down in a journal does it helps a trader to make a better decision? Because I know of many people that are in control of their actions. They got these activities recorded on their brain. Regarding it’s related to funds or assets. They may not forget a single activity immediately unless in the future. And it’s one reason I can say that a journal is good for remembrance only. What are your thoughts on having a trading journal to better your trading experience?
Most of the case why trader trade higher amount than the initial amount is they’re in loss and want to recover back their money. They can’t accept the fact since their mind always think everyday is profit, so this make the emotion went up and can’t control themself. I think everyone already know trading journal even though they didn’t installed on their device, they using their brain to remember how much they loss and how much they profit.
I think it might be something to consider if people lose track of how much they’ve traded, profits and losses.
It might also be something that could be done in a simple spreadsheet, which could then be analysed a bit more to determine reports on weekly data or per a certain number of trades too.
I could imagine a journal might be useful for people who do a lot of technical analysis with pattern recognition too to work out what works and what doesn’t as you’ll have a better idea of how you thought just before you placed the trade if you can see it exactly as it was and annotated how you expected it to go.