Keep on journaling the results of your trading analysis

Journaling your Forex trades helps you with mindfulness, and, above all, allows you to gain perspective while trading Forex.

Trading analysis is a very important aspect of being a Forex trader. Journaling and documenting your journey are vital to bettering yourself and your strategies in the Forex market. You can include as much detail on the influence of external factors as you like.

Journaling trading analysis is a way of defining your situation in your career. For some traders, it is the only way to handle pressure, and it develops strength and confidence. Not only will you be able to clarify and improve your trading weaknesses, but you will also be able to self-coach.


I. Pre-Trade trading analysis

Before the trade, look at your confluences and reasons for entry. You should have at least two profit targets and many reasons why the trade will go in the direction of your bias. Write down the emotions you feel and the present condition of the markets.

Is there news ahead? Is the market moving slowly? You can even note where you are. Are you at your desk? Also, include any other external factors, such as if you have plans later and how your schedule may affect your Forex market watch time.

II. In-Trade trading analysis

While in the trade, you will typically either be in a small loss or a small profit, but it is good to write a commentary of what is happening to your charts and if the Forex market has formed any other variations on the lower timeframes. If you are looking to close or adjust any of the positions early, then write down your reasoning. When you are in similar situations in the future, you will be able to refer back.

III. Post-Trade trading analysis

Trading analysis after the trade is the most important, as the trade will be closed and the outcome of your market judgement is finally revealed. Remember, if you end up with a loss, don’t stress yourself out. Profitability is built over hundreds of trades. But if you do feel stressed or unhappy with the trade outcome, then take a small, 24-hour break before coming back to your screen and writing down what happened.

Importance of journaling your Forex work

Journaling your Forex trades promotes mindfulness, and helps you to gain perspective on your skills within the Forex markets. As well as giving you a great place to reflect, journaling allows the opportunity to help build your skills as a Forex trader. To gain more confidence in your future decisions, you can look back on prior achievements and also document trades that resulted in a loss.

We are not all robots, so journaling is the only comprehensive tool we have to identify patterns in ourselves. When we have busy lives and other commitments it can seem so time-consuming and boring to sit down and add to your journal. The growth you will achieve will be far greater than any book or trading event, and you will thank yourself months down the road.

What to include in your trading analysis journal

As well as trade logs, it is a good idea to document your thoughts and emotions so that you can study and try to control your trading bias. Journaling your emotions as a trader will help relieve any stress you may have.

Studies have shown that in many fields of work, journaling emotions can provide a wealth of benefits, including an increase in productivity. Jotting down the details about how you feel allows you to get out of your head, a beneficial trait that can help you in the following week’s trading sessions.

You can also use journals to keep track of your goals. It’s useful to write down ‘to do lists’ along with the events that took place in that Forex trading session.

Define your own perfect way of journaling

They are many ways to journal: you can either physically write down in a notepad, or use your computer. There are helpful programs such as the Trading View that will enable you to document your charts, but the best way to document is keeping a notepad near your desk. With physical paper, you can spend time away from the screens over the weekends when you are refreshing your mind or reviewing your recent performance for the next week of Forex trading

While it’s not a mandatory task, and no one is going to tell you what to do as a Forex trader, it is on you to carry out your work and you choose how you want to operate. You can be prepared and grow, or you can rush back to the market week in, week out repeating problems that will only cost you money.

Always look to elevate yourself and eliminate bad habits. Chart time and market experience will help you understand better trading setups. The only way to document this is by journaling your experience.

Journaling trading analysis conclusion

Overall, as a Forex trader, you can either use your trading plan or copy and implement a plan you found online, but it is crucial to use the above steps to journal and document what occurs on your trading journey. The post-trading analysis will help you develop habits so that you don’t repeat mistakes and fall into an endless cycle of losses.


FTUK Funded Account Disclaimer

CFTC Rule 4.41 – Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

All our funded accounts come with a fixed equity stop out level. Once the account equity level gets below this fixed stop out bar, we will close all running trades and disable trading and access. The stop out level is a fixed value for each funding level, this means that any profit which has been made by the trader increases the loss allowance.

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