by Coin Market Manager
Trading is one of the hardest professions anyone can choose.
Only 1% of traders can consistently profit. The odds are stacked against any new trader. So how can someone be successful in the crypto market? The difference between winners and losers is the small things – details define good traders.
One of the most important details of all is self-study which empowers traders with data from their trading habits to understand strengths that need encouragement and weaknesses that need fixing. Here are some key reasons why journaling is helpful and why every good trader keeps a journal.
Everyone needs a trading journal.
The best way to avoid becoming another “failed trader” statistic is to start journaling. It is not an exaggeration to state that every successful trader uses some form of journal. That’s simply the nature of trading – objective data-driven performance analysis is an essential ingredient for success.
Systematically reviewing a comprehensive record of past trades and learning from both successful and unsuccessful trades is the simplest and most effective way to make informed decisions about future trades. All traders know they should stick to their trading plans. But only with a journal will a trader know whether their plan is truly working overtime and what parts of their plan need to be fixed.
Everyone’s trading journal is different.
Consistent profitability starts with consistent journaling. But every crypto trading journal is unique. From events that happened during a trade or price action that seemed like an actionable opportunity to emotions, weather, or position sizing, trade duration, and any other bit of possibly relevant data, a journal is a personalized record of any information traders think is relevant.
Every trader approaches the market differently, so every trading journal will look different.
Traders starting new journals should ask themselves what data they think is important to record. Over time, that list of data points might change. But knowing where to start is important. And using an automated trading journal records everything all at once, for the most convenient tracking option available.
Anyone can improve with a journal.
With enough patience and determination, it is virtually impossible to not make at least minor improvements as a trader after consistently using a journal. Traders can either assume they know what is going on or they can know. And with a journal, traders that know can improve. The more trades someone takes, the more powerful their performance data set becomes. Every bit of recorded data compounds in value and collectively provides uniquely valuable feedback for beating the market.
Trading is a game of speculation, and the goal is to become profitable by limiting random results and achieving consistency. Tracking performance data helps with exactly that.
- Set reasonable goals.
- Monitor progress.
- Analyze performance.
- Adjust from mistakes.
- Watch for improvement.
The quicker a trader becomes accountable to themselves and their journal, the faster they will improve.
Is journaling a waste of time?
One of the biggest mental barriers for new traders to start journaling is the time commitment. Sometimes veteran traders will post photos of elaborate hand-written trading notes in large notebooks. Other traders show complex custom tracker dashboards built in Excel. However, all these methods misrepresent the time commitment needed to properly journal.
Journaling trades can take virtually no time at all. Using an automated trading journal reduces hours and days of journaling into mere seconds. Personal trading data auto-populates dozens of data widgets with just a few clicks and saves time from being wasted on boring manual data entry. That valuable time should be spent finding new opportunities in the market.
In short, every trader needs a journal. And every trader’s journal should be automated.
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The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.
The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.
