Are you able to measure your results? If you are not able to measure your outputs in trading then you can never step in the ladder of success. One of the most vital factors that will make you a successful trader in stock market is documenting your trade. Yes, you heard it right. Documentation of your trade will help you in knowing your mistakes so that in future you do not commit the same mistakes again and you can also grow as a trader. Let’s understand the importance of documentation and how you should be implementing it in the right direction.
Benefits of documentation in trading
Firstly, a trader must discover what must be eliminated i.e., what is not working thereby scaling up all the flaws. We know that this might sound boring when compared to buying and selling of stocks and making money. Let us give you a valuable insight that the time you will be spending on documentation will be more vital than the time you will be spending on trading.
What’s important in trading? Have you ever pondered over this fact? Trading can be fun only if you are making money and that will surely interest you. But the question is how you will make that money? It is the right trading. How you will do the right trading? Education on trading and stock market will let you prosper in the trading and in the market. We are here to impart you knowledge with our
, essential advice given by our experts and with our articles.
Regularly make use of the journals based on trading which will create awareness and will omit the making of mistakes that a trader can make. Make a habit of keeping a track of every trade that you are making at the end of every day. Record and reflect on each and every trade that you are indulging in. For easy use of this you can actually make use of various software’s that are there such as TraderSync and Tradervue which will upload every trade that you are making. The software’s showcase all the execution charts including entries, exits and analysing your execution charts can be helpful for you as you will gain an insight on where you are going wrong.
One of the things which you can adopt is to notice and analyse your patterns and you can even label the set up that you are taking. You can count on consistency factor on your setups first and then invest in a big amount in trading. It is advisable that you must track your profits, loses and mistakes. Calculate the ratio of profit v/s loss which will give you a clarity on your trading. Daily reflection is yet another advice that we will like to give for all the traders.
Look at the greater and bigger scenario where documentation can prove to be essential for you including all other golden rules that we are giving the traders through this blog. If you have more questions do not lay them back just voice out in the comments section and we will give you innovative solutions to them. Keep reading our updates and keep trading.