Important elements of your trading journal

Professional traders are always making a consistent profit without any hassle. If you analyze their portfolio you will find a special pattern in their trading strategy. They are never taking too much risk or never lower down the profit factors. They are trading in a perfectly balanced way. But how do they manage to do so even at the world's largest financial market? The answer lies within their trading journal. A trading journal is nothing but the blueprint for the traders. Most of the people consider it as a book where they can write down the details of each trade. But actually, it’s more than that. The trading journal also tells you to perfect to look for quality trades. Let’s discuss the important elements of the trading journal.

Trading asset
Thousands of trading instruments are available for Aussie traders. But do you think the successful traders are trading all the assets? They are focusing on some major trading asset as it allows them to filter out the best signals. Being a fulltime trader, you might think trading is more placing the perfect trades with high risk. But the professional traders think of trade as an art. For instance, if you pick the wrong asset at the wrong time, you are never going to make any profit. Timing and selection are a very important factor. And the trading journal helps you to keep track of your time and eventually tells you about the most suitable trading asset.

Define your risk exposure
The naïve traders in the options trading industry can’t define the risk exposure. Most of the time they are using other people trading strategies and losing money. On the contrary, smart traders rely on their trading methods and use their trading journal. It allows them to define the risk exposure based on their risk tolerance level. Being an active trader you should never underestimate the power of false spike. Even after getting the best signals, you might have to lose trades. But if you trade with defined risk, you are going to lose a small portion of the investment. Your trading journal allows you to define risk exposure through the use of stop loss and take profit. Though this will be a little bit complicated for the novice traders once they start to follow this technique, they can easily reduce the risk.

Tells you about the trading session
Your trading journal should tell a lot about the trading session. Forget the fact, a trading journal is used only to note the details of each trade. It’s more like a checklist that you must follow before you execute any trade. If you trade random pairs without knowing important trading session, you are always going to lose money. Think like the successful traders at Saxo. They always give priority to the different trading sessions since they remain focused on a specific asset. Due to their organized approach in trading, they can make a profit without taking too much risk. Conservatively trade this market and you will never have to lose more trades.

Small break
If you ever find a professional trading journal you will notice the traders are always taking small breaks after executing certain number trades. It allows them to make more profit in any market condition. Keeping your mind fresh is one of the most important things in the investment business. There is no reason to trade the market under stress and it’s not going to improve the profit factors. This is one of the key reasons for which most of the retail traders are losing money. If you want to join the elite trader’s community make sure you are not leading your life like the naïve traders. Spend your time with successful people and take breaks regularly. And try to learn new things from the experienced traders in your leisure time.
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