What is a cryptocurrency trading journal and how does it work?
Contains a cryptocurrency trading journal the disc of all your trading activities and the reasons behind them. It helps you monitor and analyze your trading activity.
Just as you follow a particular cryptocurrency, your business needs to be followed: position taken, profit, loss, etc.
A well-kept journal helps you improve your skills as a trader or investor by analyzing your successes and failures. All serious successful traders keep a trading journal.
The trading journal not only records your actions, it also contains your trading plan and yours intentions and yours Targets. Your trading strategy ideas should also be noted in your journal.
Why is a cryptocurrency trading journal important?
The purpose of the cryptocurrency trading journal is to prevent you from repeating the same mistakes that make you lose money. The idea is that in the event of a loss or when a strategy doesn’t work, stop trading to review what you have done and see where the shoe pinches.
This approach is more constructive than constantly switching between strategies without analyzing your trading activity.
It’s like a plane that has had complications in flight. The airline does not throw it away to buy a new one. But analyze what happened to fix the fault. And this is possible thanks to the plane’s trading log, which is its black box.
You can always write a list of rules in your trading journal.
⚠️ We still have to apply them
The key is consistency and discipline 👉🧠#business #Discipline of trade #education to trade #crypto #BTC #mentality #mental #heads #commercial plan pic.twitter.com/ilPhIRrwlW
– Christelle Montillet (@lyricsdecoach) September 15, 2022
1 – The cryptocurrency journal is used to create trading strategies
The details of your intentions and market approaches should be written in your trading journal. This saves you from buying and selling tokens randomly without planning anything.
2 – The trading journal contains your trading activities
You should take detailed notes, carefully documenting your operations, profit and loss goals, etc. We will see the list at the end.
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This detailed information can be used to create a solid framework for your trading strategy.
3 – Trading diary to check your emotions
In general, traders have to work a lot on their psychological state. Your emotions will be affected by various market circumstances. However, keeping a trading journal will help you organize your thoughts and understand the emotional factors that affect each trade.
By writing a plan that you follow, you are less likely to have regrets or act impulsively. You’re just following the plan. If that’s not okay, let’s break it down later.
Things to include in your trading journal
Time to list what should be in a trading journal. The latter can be kept in an old-fashioned notebook or journal or online in a spreadsheet like Excel or Google Sheets. The advantage of the latter is that you will have access to it via mobile device.
Here are some essentials to jot down in your black box!
- The time and date of any action
- Trade execution and order types
- Crypto or traded pair (e.g. BTC / USD, DOGE / USD, etc.)
- Duration of the transaction
- Position size
- Distance and amount of take profit and stop loss
- Exit point and reason
- Entry point and reason
- Commercial results (profit or loss)
- risk / return ratio for each transaction
- Your trading goals
- Advantages and disadvantages of each strategy
- Mistakes made and their causes (how not to follow the plan)
- Any other element that can help analyze your trading activity.
Which cryptocurrency diary platform do you use?
A spreadsheet allows you to have a bespoke journal, but there are solutions to help you.