Importance Of Trading Journal In Intraday Trading
The statistics says that nearly 97% of the day traders fail in Intraday trading. This statistics might be disappointing, but we should not forget to see, the other 3% traders who have eventually become successful. Now the question is how they became successful. The answer is simple, they analyze both their winning trades and losing trades. Its possible for them, to analyze the trades, because they maintain the trading journal. This is the difference between the successful trader and unsuccessful trader.
Having said so many things about the trading journal, now its time to have a deeper look into it. So what exactly should form your trading journal. I have tried to answer this question in the following section.
You all know, that the discipline is the mantra for the successful Intraday trading. The successful traders have a self developed trading strategy which guides them for both entry and exit points for certain positions. This self developed strategy helps the trader to set the boundaries. Now, this takes discipline. Its not very easy to be in the boundaries. You will always be tempted to break your boundaries. Now, what happens if you break the boundaries. Eventually, you will end up losing the money in the stock market.
How can you develop the skill of discipline. Keep a Intraday trading journal. If you set aside some amount of time in a day to keep the track of what you are actually trading, then it enhances the traders discipline.
You can analyze your trade more specifically, if you keep a trading journal. You can examine both your winning and losing trades. By maintaining the trading journal, you will get an opportunity to convert your weakness into strengths. Every day trader will have a losing trade. But when you have a losing trade, it becomes very important to analyze that trade. You should go back and examine exactly why you decided to take the trade. This helps you to refine your strategy.
If you want to be successful as a trader, then you would definitely maintain a trading journal. Trading journal is like a bible for the Intraday traders. It is the single most important thing a trader can do. If you want to earn profits very quickly in the stock market, then start maintaining the trading journal.
You can also trade by taking the help of the stock advisory company, who provides Intraday tips on the daily basis. But for this also, you should maintain Intraday trading journal. Through this way the stock market will reward you.