A trading journal helps you in so many ways. You might not recognize it readily but trading journals are actually the key to tracking your trades and also your thoughts in detail. It is a tool that keeps you on track of the previous market conditions, how you handled your trades, and what made you suffer mistakes and obtain success. A CFD trading journal is also a record of the strategies that you used throughout the trading day.
It is important to keep a trading journal and every trader must write it diligently. A trader must keep a trading journal when trading but it could interrupt your productivity, causing missed trades. But there’s a solution to this – keeping a trading journal without the need for handwriting while maintaining its effectiveness.
The Easiest Way To Keep A Journal
As they say, a picture says a thousand words. Therefore, instead of writing every mistake, every strategy you have, and ideas that pop up in your mind, you can just take a screenshot of your trading day and write some annotations to describe each photo. Traders who use this kind of method usually mark their charts, draw lines, and market indicators that will help them in the future when it is time to determine the trend and also find possible target points and reversals. With pictures of your chart, it will show the exact condition of the market. Although pictures are easier for a trading journal, you must also include several things that will be helpful for you when you scroll back at it at a later time.
Marking Your Charts
Here are some important guidelines that you can follow when marking up your trading charts.
Before you start trading, you must include an hour of price action. This will give you a glimpse of what is really happening before the start of the trading.
Mark the time that you started trading with a vertical line or you can also put a note on it in the chart. This will let you know if you have started trading early or not.
Throughout the entire trading day, you may add some text notes that point out the tendencies as well as the market conditions that you have noticed as you trade. If there are errors on your trade, you can add a note to it.
Put trend lines and drawings throughout your chart. This will be the best way to show your future self how you saw the market during that particular day.
Put a mark on the time when you stopped trading. This can appear as a vertical line or even a text note will do.
At the end of your journal, write down the number of trades that you made and how many wins you had. You can also write the number of times your loss and the amount taken from your account. Take note of the net results too.
By marking your charts properly, you are able to make your pictured CFD trading journal more comprehensive and easy to understand later on.