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Why Trading Journal is very important part of Trading activity.

Trading Journal is an excel document that is updated after the market hours once you have taken the trade and it is a mandatory thing for a professional trader to be a consistent and successful trader in the market.

Most retail traders don't follow it because of time constraints since they are busy with their jobs and businesses. The rest of the retail traders don't know about it and how exactly it will help them build their mindset and be a consistent and successful trader in the market.

Trading Journal required below things:-

All trades you took (Excel file needs to get updated whenever you took any trade, mainly after market hours by EOD).

Why you took them in the first place. And what all things are running in your mind while taking a particular trade.

  • Did you follow particular rules to take trade and how often you break them.
  • How much profit you make when you are right and for how long also.
  • How much loss you took when your analysis goes wrong and for how long also.
  • Did you trade by your own analysis or it's a call given by others.
  • What is your mental state at the time of taking a trade
  • Did you overtrade for more profit(Greed) OR you overtrade to recover your losses(Fear).
  • Did you trade because of FOMO(Fear Of Missing Out).

These all things you have to keep that in "Trade Note" section and you have it read it by EOW, make it a habit of doing this activity on Saturday or Sunday as per your time availability. 

Column name as per Excel sheet:-

  • Date
  • Time
  • Long/Short
  • Scrip Name
  • Entry Price
  • Account Balance
  • No. of Shares
  • Stop Loss Price
  • Take Profit Price
  • Profit {(Take Profit Price - Entry Price) X No. of Share} [Multiply -1 if Short trade]
  • Loss {(Stop Loss Price - Entry Price) X No. of Share} [Multiply -1 if Long trade]
  • Trade Cost
  • Trade Note - All your mindset-related thoughts should be in this section.














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