Why you should assess your trading journal

You must Assess your Forex Trading Journal for purposes of good performance & decision making.

Reviewing your trading journals is very important.

You can tell whether your system is working or not and the areas that need improvement.

It is one thing to have a trading journal and another to review or asses your trading journal.

The same way companies review their records, statements and files to track down performance, you should do the same.

Mostly, it helps companies to know the product –line performance, management performance, cost management decisions and resource allocation.

Reviewing your trading journals as a trader helps you to know what works and what doesn’t work for you.

It also helps you to know how much time you need to dedicate to trading and which type of  trading suits your trading style.

After reviewing  your trading journals,you can also tell which session has the best setups for your trading system and the best traded currency pairs.

When you assess your forex trading journal, you can figure out the following;

• How much you can afford to risk on your account and which size fits your stop loss
• When is the right time to enter a trade
• How you set your stops and targets.
• What do you need on your trading plan and your trading rules?
• How to adjust your trades, and on what basis?
• Whether you are closing winning trades too early?

All this will help you to put yourself in order and choose a consistent trading style.

How valuable is it to assess your forex Trading journal?

Keeping a trading journal sounds simple but most traders still find it hard to maintain it.

It takes discipline and commitment to track those records, take screen shots of your trades, make a follow up on your trading rules and to do it every now and then.

So, why should you keep and assess your forex trading journal?

1. When you follow up your trading journal, you will always be reminded of your previous mistakes and so try hard not to repeat them again.
2. Your journal will act as a reminder to you for every trade you plan to take which calls for accountability and the reasons why you feel you should take that trade.
3. At the close of every trade you can easily assess yourself and follow up the systems performance at the end of the day.

All this sounds a bit hard but it is achievable and pays. This is the quickest and most efficient way to make you a profitable trader.