A Trading Journal is both an objective record of your trading decisions (numbers & dates) as well as a subjective record of why you made them and how they panned out.
If you are serious about cryptocurrency trading you must be willing to keep a Trading Journal that is entirely honest. It is too easy to simply screen out the failures and just hang on to successes, but that is a guaranteed way to get rekt.
Keeping a Trading Journal requires a systematic approach to each trade that you make, split between Objective and Subjective categories. The objective elements are suited to a spreadsheet format, while the Subjective are more like annotations.
Objective Elements of a Trading Journal
- What currency pair you are trading
- Your entry price & date/time
- Your exit price & date/time
- Your target exit price & the difference with Exit
- Trade duration
- The type of trade – spot or limit; long or short
- Trade size & proportion of your capital
- Profit/loss from trade
- A clear logic for making the trade
- A measure/index of risk & a confidence level/index for the trade
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