Very few people keep transaction logs; after all, real-time transaction logs are not only able to be viewed and used anytime and anywhere, but they can also track some payments. In this way, compared with paper transaction logs, real-time transaction logs are indeed more convenient, even if you need to calculate some amounts, such as the margin limit of each transaction, the amount of gain, the amount of loss, real-time transaction logs can help you.
However, it is not for nothing that paper records still exist today, knowing that they have many features that real-time trading records do not. Given these advantages, the manual production of paper records can still not be completely replaced. Investors need to be aware of the purpose of a trading journal. In addition to the trading log, which records all transactions made during a fixed period, investors can use the trading log if they want to keep track of their transactions. Any factor related to trade, such as results, gains, losses and various transaction details can be found in the trading journal. Of course, trading logs are not only used as a data carrier, but better trading logs can even give you some relevant information about your investments. So how to use the relevant information presented in the trading log? Instead of rushing to decide on each trade, set the parameters that you need to refer to in the trading log and later decide whether you want to proceed with the trade based on these references.
Many good investors understand this feature of the trading log and use it well to ensure that most of their trades are profitable, which can greatly reduce the risk of trade damage. Many established traders talk about insights and believe that the biggest factor in success is not trading experience or knowledge of any kind, but the psychology of trading. You will find that by using a trading journal, you can anticipate some of the information and circumstances of a trade in most cases so that even if the trade fails, you will not feel too frustrated.
This article introduces the trading log and mentions several advantages of the trading log. Readers can refer to the article's suggestions, understand the importance of the trading log, and try to use it before the next trade. In addition, the results of investment transactions are unpredictable and when you cannot change the results, the only thing you can change is your investment mindset.
A principled trader is a profitable trader. Keeping a trading journal is the first step in establishing principles. This may sound simple, but it can be difficult to get started. Many traders give up on keeping a log after a while and rely on the recorded trades provided by their brokers. Keeping a well-kept, well-documented trading journal is just as good as having a coach who is watching your back and teaching you.
