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Are you wondering how to become a better binary trader? The answer is simple: Start a trading journal to monitor your trading progress. From time to time, traders need to update their skill set to boost their trading success. In addition, taking accountability to make the right trading decision at the right time improves a trader’s success rate.
Maintaining a trading journal can be a great way to track what you are learning in Binary trading and how you plan to implement those in the future. In this way, you can go through your journal to remember an old trading technique that was profitable back then. To explain better, here is everything you need to know about starting a binary options trading journal.
Step by step tutorial to create a Binary Trading Journal:
A trader uses many tools and techniques to improve the trading results, among which a trading journal is a must. It is nothing else than a collection of the trader’s all trading transactions from the past. Thanks to its effectiveness, a trader can note down important details about his previous actions to recognize his strong and weak points.
The trading journal can either be a physical diary or a digital MS Excel or Word file. It doesn’t matter what type of trading journal you have, but it must be according to your preferences and contain all your past trades.
Nowadays, most traders maintain a digital journal file as it is easy to create and easy to edit from anywhere and anytime. Now, let’s learn how to start a binary options trading journal!
Step 1: Creating the content
Creating the contents of your trading journal is the most crucial step. Think of the trading journal as a free space where you can write anything that goes into your mind while trading. From writing down the names of all financial instruments to all used trading strategies, the trading journal must contain all necessary information related to your past and current trading activities.
Now, you need to include every transaction details that you have made in the past, along with the following information:
- What kind of transaction was it?
- When and how did the trade end?
- Why did you decide to open such a position?
- What tools and techniques did you apply?
- What were your thoughts before finalizing a decision?
Don’t forget to mention the invested amount and the expiration time, along with the direction of the trade. You can use indicators in your journal’s content to highlight the best winning strategies that have helped you make remarkable profits from your previous binary options trading. Moreover, you can take notes of the soft factors that you find helpful at the moments of trading.
You can categorize your journal’s contents as “the best trading transactions” and “the worst trading transactions.” Categorizing your trading journal’s content will help you understand where you went wrong and how you can rectify that.
You can then adapt new strategies and techniques as per your needs to improve your binary trading results.
Now, it’s time to customize the content.
Step 2: Customize the journal as per your preferences
The most crucial requirement of creating an excellent binary trading journal is a precise understanding of what you need. When you know what you need to include, creating a binary options trading journal becomes much easier and simpler for you. Now, it’s time to build your trading journal according to your taste!
- Consider your state of mind: Most traders make their best decisions in a particular form of mind about which they only know. So, no one else except you can genuinely understand your state of mind.
You only know how your brain operates in the most pressurized conditions and how your brain reaches a decision at the most critical time. So, try to focus on your mind and understand how your brain works when making trading decisions.
The important thing is to find the right time to trade. Then, if you can analyze your state of mind well, you will build a better trading journal.
- Highlight your losses: Indeed, trading your money can be riskier sometimes. So while you build your binary trading journals, make sure to emphasize your trading losses. Include every type of trading style that you have previously tried.
Once you start learning from your previous mistakes, you will find your unique trading style. So, don’t be frightened while opting for a risky trading style as a beginner. Instead, think of it as a learning opportunity and include everything you learn from it in the trading journal.
- Build a better winning strategy: It’s often seen that many traders fail when they solely focus on winning big. The two main approaches of binary options trading are:
1. To win a high percentage of trades one time.
2. To make money little by little with each winning trade.
While others focus on maximizing their profits, you need to increase the number of your winning trades. It doesn’t matter whether you win less or big. What matters is you keep winning instead of losing. The higher your winning percentage will get, the better your winning strategy becomes. Use the binary options trading journal to monitor your growth so that you can improve your trading style.
(Risk warning: Your capital can be at risk)
Step 3: Organize the journal for a better understanding
Consider the trading journal as your diary, which you only understand and nobody else. Instead of making the journal look like a rigid book, use short forms and simple language to understand it better. Don’t keep writing hard-to-read long sentences on the journal’s pages. Instead, try the following styles:
- Use table format to enter your daily trading entries.
- Use the serial number or the bulletins to keep the transactions in series.
- Change the text colors according to your taste.
- Highlight important notes in between so that those are easy to find.
- Make short forms and incorporate them into your journal content.
Some traders don’t take this step seriously and miss out on some of the points mentioned above. As a result, the journal becomes hard to read by them. You can avoid such a situation simply by developing the journal content with the utmost attention.
Start building your journal thoroughly from the beginning with whichever information you find interesting. Then, slowly, keep incorporating your regular learning highlights as new entries and see how that goes. With time, you will discover the binary options trading journal to be of great help!
Top reasons to have a Binary trading journal:
Now that you know how to create the perfect binary options trading journal for yourself, it’s time to understand why it’s necessary to have a journal. So here are the top reasons to have a trading journal.
#1 You need the trading journal to keep earning money
Like every trader, you have to begin somewhere, which is indeed difficult. Once you start trading, consider the journal as your regular diary writing. Keep taking short notes every day in the journal. Slowly, you will understand how the journal helps you to:
- Understand your winning percentage
- Discover better winning strategies
- Master the latest binary trading trends
When your trading journal indicates that you have won significantly less than the last month, then it’s time to analyze where your techniques went wrong. First, check how you invested your money in the previous month and compare it with your current trading style.
You are likely to find the mistakes that you made recently. Thus the trading journal helps you understand which trading strategy suits which type of market environment. As a result, you keep constantly earning via successful binary options trading.
#2 The trading journal helps You monitor other traders
In the trading world, there is no end to learning. Every day new binary trading trends are setting new records. While someone wins big, another person faces enormous losses. However, if you want to stay on the winning side, you need to study what others do.
The best way to do so is by maintaining a trading journal. It will help you to analyze other traders’ recent trading styles. You can examine the reasons behind the losses of other players and learn how to overcome such risks in future trading.
The more you study others’ binary mistakes, the more you learn about the latest binary options winning trends.
Conclusion: Trading journals are efficient tools
A trading journal is a powerful and efficient tool for modern binary traders who aim to become better traders. The journal helps traders understand the tricky parts of a trading strategy, but it also helps the traders understand what went wrong when they lose.
Before it gets late, every trader should start creating a trading journal along with a money-making trading strategy. A good trading journal with a solid understanding of yourself is enough to make you a pro trader quickly.
(Risk warning: Your capital can be at risk)
