Forex Trader’s Psychological Diary
As it is known, success in exchange trading largely depends on the psychological state of the trader. Therefore, many books and workshops are devoted to the psychology of trade. According to statistics, any profitable system depends on 80% of the personal features of the speculator, and only 20% of the rules and conditions of trading operations.
That’s why the psychological diary is an indispensable element of any Forex novice. Its main purpose is to provide practical assistance to the trader in fighting his internal challenges: fear, anxiety, greed and other emotions that prevent him from trading qualitatively and profitably.
Psychological diary is actively used by all experienced market players in their activities. Periodic analysis of your emotions helps you to develop the right habits that contribute to profitable Forex trading
Template for keeping a psychological diary
Below are some excerpts from the psychological diary of the newcomer Forex trader, which helped him to trade better.
“«03.04.2014. Waiting for the first deal. All thoughts about the market. There is a passionate desire to open a position as soon as possible. Emotion is dominated by anticipation. There are a lot of options to enter the market, there is a throwing between the three selected currency pairs. The situation is caused by the quickest desire to test its methods of earnings based on trade from strong technical levels with the addition of elements of candle analysis.
Conclusion: even a fully tested trading system makes no sense without discipline and control over your emotions.
Entrance. Terrible excitement as it was the first time that it opened a position in the currency market. I guess it’s all gonna be over soon. I train to be disciplined and fight the fear of trading.
Conclusion: We must continue trading. This is the only way to achieve a stable income.
Negative precipitate remains due to lack of profit. I’m feeling a lot of sadness and psychological decline. After the deal, I was thinking about the stages of development of the currency speculator:
- The first stage is to keep the deposit by the novice trader;
- at the second stage, a trader should learn how to get a small but stable profit;
- At the third stage, trade becomes semi-automatic and is accompanied by regular super-profits.
All traders (including me) want to be at the third stage at once, but it is impossible. You have to understand that.
The deal was conducted quite competently and corresponded to all trading conditions. I realized that there are no ideal strategies for earning money in the foreign exchange market. Each system contains a certain percentage of risk.
Conclusion: The deal helped me gain invaluable experience. I will improve my trading system, as well as train myself in terms of discipline and psychological stability.
Psychological diary is the key to rapid progress in trading. Since only the method of self-analysis and analysis of one’s own mistakes can give a novice trader a sense of self-confidence.