2 Tools for profitable forex trading
|Forex trading journal
Trading journal is your personal document (or notebook) which helps you to move your trading in the right direction and on to the next level. If you want to become a consistently profitable trader on the long-term, and enjoy the lifestyle that comes with successful trading, you must use the trading journal.
Trading journal can turn an average trader into successful one. Profitable forex trading is possible only if you start using and following forex trading plan and journal. Forex trading tools you need are…
Often I see many unsuccessful traders who simply not use it. From my experiences there is a big connection between very successful forex traders and trading journal.
Why?
Trading journal is your personal document with your trades and decisions made. It is document with your successful and unsuccessful trades and decisions. This allows you to track, learn and improve your trading performance.
When it comes to trading you need to have disciplined and organised approach. Trading journal will not be useful, if you are not consistent with using it on every single trade you make. Over the time you will see what works best for you and what is giving you results you want. As traders you need to focus on yourself and on your own trading. Cut distractions and focus.
All successful traders started somewhere. They wanted to be where they are today and change their bad trading results and habits into winning ones.
How did they achieve them?
They learnt consistent trading edge, they were learning and practising, traded with patience, discipline and learned from their own trades and mistakes.
To make yourself a trading journal is very simple.
You can save screenshots of your entries, management and exits of each trade you make, and add few comments and notes. It does not take you a lot of time, so laziness should not be the excuse.
Forex trading plan
Trading plan is, along with the trading journal, another most important tool you need, if you want to have long-term trading career. Trading is not a hobby.
If you are serious about your trading, you must treat it right way. Trading is a business and it must be treated that way.
Trading plan is actually your business plan which you will need to follow consistently, and not change it every day. Consistent action creates consistent results.
Trading plan must be very simple and clear with important information only. A lot of traders complicate and they make long trading plans which they can’t follow. Trading plan should not be more than 1-2 pages long.
Most important things to include in your forex trading plan are:
- Daily trading routine
- Entry rules
- Exit rules
- Money management rules
- Your trading style
- Currency pairs, markets you will trade
- Personal notes,rules,goals
Trading plan is your business plan and daily guide to trading success. Make one and follow it religiously without any excuses. Trading plan is your daily guide to your long-term trading success.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.