Keeping a journal when you are learning Forex trading will help you succeed sooner. How often have you come to the end of the week and wondered what your goals were or what you were doing to trade either successfully or unsuccessfully? What worked? What didn't? Keeping a journal or keeping track of your trades even in a word processor can help you over time. Let's see what we can learn.
1. Use a journal to plan your week
2. Use a journal to plan your process
3. Use a journal to review your week
4. Use a journal to come to conclusions
1. Use a journal to plan your week - It's Sunday night or the weekend and you decide to think about how and when you will trade in the week to come. This is excellent information to write out setting goals and determining when you are going to trade and what kind of trades you are going to look for. As you improve in your knowledge of currencies you may want to include your predictions as to what you think the market will do based on economic conditions. By keeping a journal you can look back and see where you were right and where you were wrong and how to improve.
2. Use a journal to plan your process - After #1 above decide on what your process will be for looking for your type of trade and what steps you will take. The more uniform this process is the better you will become. There is a concept about intuition that says if you practice thinking about and doing something like trading you will begin to intuitively become better at it.
3. Use a journal to review your week - The week is over. It's Friday afternoon. Go back over your results. Think about how you traded. Be honest with yourself but don't be over critical either. This is a time to be as objective as possible with the idea of improving your skills.
4. Use a journal to come to conclusions - As you trade and time passes you will try different things. You will learn and hear/read about trading from a variety of sources. Some of these things will be important to remember and review from time to time.
Learning Forex just as learning anything takes time and thought. Using a journal is one tool that will help you see your progress and become an analytical tool for your trading and trading skills. Try it for a year and see if you don't improve your trading skills and results. My bet is that you will.
To learn Forex Paul Dean, the owner of You Learn Forex has developed a trading indicator using RSI, the Relative Strength Index. The RSI Paint Indicator to locate Reversal and Divergence signals on RSI.
He has written three eBooks: RSI Fundamentals: Beginning to Advanced, RSI Trading Examples Vol. 1, and RSI PRO:The Core Principles.
He has also created The RSI PRO Forex Trading Course and is the originator of The Dow Trade. Visit the site to read more about trading Forex. Providing quality reviews, articles and writings on forex online.
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