A journal is an excellent tool for maintaining a record of what you are experiencing, how you are working, and also how you make choices. If you need to recollect why that particular exchange was so incredibly wonderful, all you can do is to go look at your journal. Accounting is among the most important benefits of keeping a journal. You are held responsible if I write it down and execute a trade based on it. You will find yourself avoiding risk, less likely transactions, and predictions, and your overall performance will rise.
A trader can apply a variety of techniques to boost his trading success. One of these is a trade journal. It allows a trader to identify their strengths and weaknesses and improve.
The purpose of this post is to demonstrate what a trading journal is, why it is valuable, as well as how to utilize it effectively.
How to Start a Binary Options Trading Journal?
The trade journal is nothing more than a compilation of all your previous trades. This is where you keep track of the specifics of your activities. The shape is not as essential as the content. It should match your choices. This may be a notebook in which you record everything down, or it could be a digital equivalent, such as an Excel document.
All of your previous transactions should be documented in your trade journal. And for each trade, make a note of the below details.
Stage 1: Design the Contents
The most critical stage is to write the details of your trade journal. Consider the trade journal to be a safe place in which you can jot down everything that comes into your thoughts while trading.
The trade journal should include every relevant information linked to your past and new trading activity, from jotting down the descriptions of all financial assets to all employed trade strategies.
You must now enter all trade details you have ever done previously, as well as the necessary details:
- What was the nature of the transaction?
- How and when did the deal come to an end?
- Why did you choose to start in such a role?
- What methods and instruments did you employ?
- What were the ideas prior to making a choice?
Do not fail to provide the investment made, the expiry date, and the trade trend. Under your journal’s subject, you can utilize signals to emphasize the greatest successful techniques that have assisted you in generating significant gains from prior options trading. You can also make a list of the subjective aspects that you consider important when trading.
In addition, you can categorize the data of your journal as “the finest trades” and “the worst trade transactions.” Categorizing the material of your trading log can allow you to identify where things went wrong and try to fix it.
You can also tailor fresh methods and approaches to suit specific needs in order to increase your binary trading performance.
Now it is essential to personalize the material.
Stage 2: Personalize the Journal based on Your Interests
The most important criteria for developing an outstanding binary trade journal is a clear grasp of what you desire. Once you understand what has to be recorded, the act of creating a binary options journal gets a lot convenient and easy for you.
It is now important to customize your trade journal to your preferences!
Analyze Your Mental Condition
Several traders put their wisest judgments when they are in a mindset that only they understand. As a result, nobody else can truly grasp your mental condition but you.
You alone understand how your mind operates under extreme stress and also how your mind makes decisions at critical junctures. So, aim to concentrate on your thoughts and comprehend how your brain functions when making trade judgments.
The primary issue is to trade at the proper moment. Then, once you can properly analyze your mental state, you will be able to create a good trading journal.
Emphasize Your Failures
Investing your cash might be scary at times. Therefore, when you create your binary trade journals, be careful to highlight any capital losses. Also include the trading technique you have attempted in the past.
You will discover your distinct trading technique after you begin to learn from the prior failures. Therefore, as a newbie, do not be afraid to choose a riskier trading method. Rather, consider it a learning experience and record all you acquire in your trading journal.
Create A More Effective Winning Approach
Several investors fail when they are entirely focused on winning large. Options trading is divided into two strategies:
- To gain a large percentage of trades all at once.
- To profit gradually with each profitable trade.
While others are concerned with increasing their earnings, you must improve the number of successful deals. It makes no difference if you win small or large sums. It is important that you continue to win rather than lose.
The more your winning rate, the more effective your winning approach. Utilize the binary trades journal to track your progress and enhance your trading approach.
Stage 3: Format the Journal to Enhance Understanding
Assume the trade journal to be your notebook that only you and no one else can read. Rather than having the diary appear like a stiff book, adopt simple phrases and simple terms to make it easier to grasp. Do not keep adding lengthy, difficult-to-read phrases to the journal’s sections. Alternatively, experiment with the following styles:
- Add your everyday trade records in the table style.
- To maintain the activities in order, use the serial numbers or bulletins.
- Customize the text colors to suit your preferences.
- Highlight significant remarks in between to make them easier to discover.
- Create simple phrases and include them in your journal’s information.
Several traders fail to follow this process properly, and as a result, they miss out on some of the things listed above. As a consequence, they struggle with reading the journal. You may prevent such a scenario merely by paying close attention to the journal contents.
Begin filling out your diary completely from the start with whatever data captivates your attention. Then, gradually add your daily learning moments as new content and observe how that works. Over time, you will learn that the binary options journal is really beneficial!
Why Is a Trade Journal So Helpful?
Keeping a trading journal may significantly enhance your performance while dealing with binary options. It is a proven truth. How is it so beneficial? The 3 most important reasons are as follows:
To Make Money, You Must Keep a Trading Log
Each trader has to start somewhere. And debuts are frequently challenging. You have no idea what is the best approach and technique for you. You have no prior expertise with technical indicators. You have no idea how to deal with impulses. These are the issues that the majority of trader’s face. And keeping a trade log is a good approach for dealing with this stage.
You take notes in your journal and come to judgments. You will be capable of differentiating between events that help you analyze your previous deals. As a result, you will learn what generates more money and what takes away your cash.
For instance, you may have noticed that the majority of your successful trades occurred in the morning. This indicates that this is the optimal moment for you. Alternatively, if you acquire more profit from a specific asset, this is a sign that you must concentrate on it. It operates in the same way for expiry time, tactics used, etc.
So you will observe that the trading journal enables you to choose the most effective trading technique and remove what clearly does not serve. Pair it with a free demo account. It is a fake cash account, so all trades are 100% risk-free. You must experiment and practice for a time here, maintain a trading log, and then shift to the actual account to earn actual cash.
The Trade Journal Assists You in Making Profits On a Consistent Basis
Finding your own money-making approach is not the only thing you will need to do. Once your technique has succeeded effectively for a long period, there is still the chance that you may grow sloppy. And when you lose attention, you create room for errors. Moreover, your plan may be effective under certain situations, such as amid a crisis. However, it will not always succeed when the market is in a bullish trend.
You can simply cope with these issues if you diligently record your results in a trading journal.
Your Trading Journal Enables You to Outperform Competitors
Somebody gains and somebody losses in the trading community. The brokerage firms are the intermediaries among these parties. Their position is one of negotiation, and they are compensated for it.
A trade journal is a strong and effective solution for trendy binary investors who want to improve their trading skills. The journal not only assists traders in understanding the tough portions of a trading technique but also assists traders in understanding what actually happened when they lost.
Before it is too late, every trader must learn to keep a trading journal and develop a profitable trading technique. An excellent trading journal combined with a thorough knowledge of yourself can quickly transform you into a professional trader.
You need to be on the victorious side of things. And in order to accomplish so, you should be superior to others. The trade journal will assist you in achieving this aim. If you are utilizing it, you will be obviously ahead of others who aren’t. You should recognize that you should strive to outperform other investors, not brokerages. The brokerage firms will give an average compensation depending on the overall return that an ordinary client may expect.