Traders may wonder why people still need to keep their own trading logs when trades are recorded in real time and can be retrieved at any time. In general, the real-time record records the profit and loss of every trade in detail, and it also gives you a real-time account balance, so you don't have to do it manually and it automatically gives you a calculation of how much you gained and how much you lost on every trade, very precise and convenient. But in general, handwritten paper records have many outstanding advantages over real-time records.
First, through the transaction log, we can clearly see the historical transaction records in a period of time. It gives us a simple picture of the transactions we're making. They also showed us the account details clearly. For example, each transaction expenditure versus income. Simply put, a trade log is a database that stores data about your trades. It contains the frequency of your trades, the results of your trades, the profit and loss of your trades, the combination of currencies with the highest returns and the most appropriate timing of your trades. It's very clear. So, by keeping track, you'll get more data for later reference.
Second, a good trading log provides you with valuable and realistic data that you can use to plan your investments, so a trading log is an excellent planning tool. You can write a few numbers in your log before you trade, for example, acceptable risk, expected profit, etc. You can use numbers to record and describe your thoughts and then act on them. So a trade log is the basis for planning and acting on trades.
Third, in the future, we may be able to make unexpected wealth through the transaction log. You keep the details of each trade in your journal, and over time it will filter out what works for you and whether it works in today's market. Like which of your investments works in which situations? What can be done to stop losses effectively? Does stop-loss setting affect trading? The answers to these questions can be found in your journal, which needs to be clear and comprehensive.
Fourth, one of the most important effects of a trading log is that it can change the way you think. It can help you move from destructive thinking to constructive thinking. When you follow your own plan, your confidence will be built up. Your ability to withstand stress will increase. Even if you lose, you don't keep denying yourself. In the game of trading, regulating emotions is key. Greed, fear and doubt are human nature, so it is important to be calm and confident in the face of the ups and downs of the market.
Overall, a trading log is a great tool for a good and successful trader, because it contains a lot of data and allows you to clearly see trends and develop a comprehensive trading plan from which you can learn and improve your skills.
