QUOTEX TRADING JOURNAL TRADING
QUOTEX TRADING JURNAL TRADING is is an evaluation system in Quotex Trading that serves as a trading evaluation material so as to further increase the profit and ability of Quotex Trading
A successful trader certainly has a system that helps in making trading decisions. A trading system is developed through several trading experiences. One of the tools or tools that can help traders develop systems according to their needs is a Trading Journal.
The existence of a trading journal greatly influences the process of observing and reviewing trading performance. You might think why the management of trading journals is very important, even though every broker (broker) already provides real-time recordings of their customers’ transactions, including a history of the strength of long positions, the use of capital (margin) and the amount of profit/loss from each position you place. But still, good trading journal management is needed to monitor your performance from time to time.
Trading Journal will Easier Trading System Evaluation
The benefit of a trading journal is to make it easier for traders to re-examine trading methods. The trading journal will provide a flashback of how well trading systems have worked, as well as how they perform on each product as market conditions change. The journal will help to answer how the system performs during a trending market, range-bound market at different time-frames.
Traders can also see the impact of trading decisions, for example taking profit too quickly, placing too tight or a stop loss order that is too wide. Traders can review the work of the trading system periodically (weekly, monthly or quarterly) and find out whether what was done was right or wrong. After that, the trader can improve the trading system if needed.
An incentive to become a more professional trader
The most striking advantage of a trading journal is its ability to change a trader’s habits from destructive to constructive. “Plan your trades and trade your plan” will help in increasing confidence and trading patterns more professionally. One of the emotional factors that play an important role in trading is self-confidence.
A comprehensively designed trading journal will show trading statistics and provide the required response parameters. Thus, traders will get feedback from each transaction, which is useful for developing and improving trading skills.
Basically, a trading journal will make it easier for traders to review each transaction, measure performance and record thoughts and observe market conditions. By having these records, traders can more easily improve the effectiveness of the trading system.
WHAT IS THE CONTENT OF THE TRADING JOURNAL?
- Transaction Time
Contains details of trading time.
- Product / Currency Pair
By writing down the types of products traded, traders can observe what trading system is suitable for each product.
- Entry B/S buy and sell positions
Traders can find out the ideal position for each position, either buy or sell.
- Lot / number of positions
Writing lots is needed to determine the next trading step. For example, if you start trading 1 lot with an initial capital of US$10,000, the trader will only start trading 2 lots when your total capital increases to $15,000 or more. However, if the amount of capital decreases, the trader needs to reduce the number of lots as necessary.
- Entry Price, Profit Target and Stop Loss
Limits and stop levels should be determined before entering a position as this will help in testing the risk to reward ratio.
- Risk to Reward Ratio
If the trader does not make a win with a risk to reward ratio of 1:2 or more, then the trader will know how difficult it is to make money in the market. Usually traders who are able to generate large profits quickly lower their risk-to-reward ratio.
- Exit Price & Exit Date
Writing the closing price at a time will show the level of discipline of the trader in following the trading plan. Another important point to note is the date when a position is closed. If the position is held for a long period (more than 2 weeks), usually the loss will not be accepted by the trader. The trading journal will show whether the duration of the position held should be maintained or not in terms of capital adequacy.
- Profit & Loss
It is very important to record the amount of money made or lost from each transaction. This record will assist traders in monitoring the level of profit / loss in each transaction, showing whether you are able to maintain the risk to reward ratio and whether the losses in each transaction are too large compared to the amount of capital.
- Reason for Position Taking
By writing down the reasons, traders can monitor which trading system is most effective and working well for each asset. More than that, this method will make it easier for traders to improve the trading system so that the level of profit also increases.