The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. In last week’s article I discussed what a typical day in the life of a professional Forex trader is like. I am how stuff works forex trading to first explain to you why having a Forex trading journal is essential to becoming a professional trader, and then I am going to show you what my trading journal looks like so that you get an idea of how to make your own.
If Your Impatient and Can’t wait to the end of this article. I Track All My Trades Using This Spreadsheet. Pay it forward and share it around with other traders. Why do I need a Forex trading journal Nial? First off, you need a trading journal because you need to track your trading performance over time. Next, developing a track record is something you should take pride and pleasure in doing. If you have a tangible track record that shows your ability to be consistent and disciplined over time, you won’t want to mess up this display of mental strength by committing emotional or stupid trading mistakes.
Finally, as we discussed in last week’s article about a day in the life of a pro trader, your trading should be a routine. Creating and maintaining a trading journal gives you the structure required to build your trading routine on and it also helps you examine and focus on each individual element of a trade, which we will discuss below. What should my trading journal include and how do I make one? The images below are actual screen shots of my trading journal. I took, although it was a good price trading action setup. If the order never gets filled just delete it from you journal.
If you are unsure which currency pairs are best to trade, check out this article: best Forex currency pairs to trade? Planned Stop and Planned Target: You will put your pre-determined stop and target price in these boxes. It’s very important to pre-define your stop level and target level. Risk: How much money can you lose on the trade? Reward: How much money are you aiming to make on the trade?
To learn more about position size click here: Forex position sizing. Exit Price: What price did you actually exit the trade at? To learn about exiting trades click here: Know When to Hold em, Know When to Fold em. How many pips you gained or lost on the trade.
L: How much total money you made or lost on the trade. Planned R:R : What was the pre-defined risk reward ratio of the trade? Actual R:R : What did the risk reward ratio actually end up being? This is important, if you aren’t achieving a risk reward of 1:2 or greater on your winning trades, you will see that over time it’s very hard to make money in the markets.
Also, you will notice that if you take profits prematurely this greatly lowers your risk : reward ratio, and of course if you take a risk that is larger than what you had planned the same thing happens. Exit date: Date the trade closed. Did you trade a valid price action trading strategy? Final thoughts Documenting your Forex trading results is a necessary component to becoming a professional Forex trader. As your trading journal progresses over a series of trades, you will start to see the significance of it more clearly. Thank Nial every information you have sent. Thanks very much i will do this most important task and am sure mt trading will improve.
Perfect Sir, I am using just like this. Then I have a monthly data sheet where I write summary that includes number of trades, no of winners, losers, max loss in one trade, max profit in one trade, losing and winning trades in a row . Your the perfect coach to look forward. Got all answer ready that shows your experience. Very good detailed journal and perfect for reminding of what strategies worked and which ones didn’t which can point out highlights in trades and improve your own personal trading strategy! S you cannot see the trees for the woods and I have ended up just not using one which is definitely not a good idea!
Your mentoring is among the best of any I have followed in my 8 years of trading forex. You open mind and create inspiration. All i can say is thank you for the Everything i could go on and on but that isn’t needed the proof’s in the pudding, your articles are very insightful and educational to say the least. This is the best article I ever read in the internet or any seminar about trading fourex. I have lost tons of money without a good trading plan and journal. Now, I am utilizing the trading plan setup with your suggestion above.
I have hope to achieve my goal now. As everyone else has already said, THANK YOU for this article, this spreadsheet and all the other information that you are providing. I have at the moment, and other things which affect my trading decision. For the sake of being as honest as possible with myself, it’s important to enter this number in BEFORE I see the results of the trade.
Thats what we all need is the tools to inch that much closer to our dreams. Thank you for sharing your tricks of the trade. Thx Nail, big thumb up for this article. Thank you for the Journal which will act like a mirror, showing me my strength and weakness as well. Your journal is much clearer than mine esp excel format. This is much more minimalistic to my lifestyle. Thank you Nial for these free articles you’ve provided for aspiring traders like us.