The best predictor of future behavior is past behavior and an excellent way to keep track of what you have been doing in the past is by keeping a trading diary. With a Binary Options Trading Diary, you will be able to figure out your own ‘trading behavior’ and determine whether this behavior is helping you or harming you. In fact, without the benefit of a trading diary, the road to succeed can be unnecessarily long and tedious. Wondering exactly what you should put in your diary? Here are some pointers that will clarify this for you.
Ensure Your Diary is Accessible
This is not the sort of diary that you keep hidden under a pillow and write an entry in before you go to sleep each day. Your trading diary needs to be your constant companion, and should be by your side every single time that you want to make a trade. Furthermore, your diary does not need to be on paper. It would be better suited as a digital diary that makes it easier to refer to specific dates and transactions.
Each time you complete an investment, take screen shot including the price chart and save it in a file named with the date. Include additional notes in this file such as what else you saw happening within the market, the prediction that you have made, and whether your prediction was accurate. Include the reasons that you thought this would be a good trade, and explain your general mindset.
This may sound like a lot of information to put in one entry, but at the end of the day, when you look back over several entries you will be able to discern a pattern.
Saving your diary on a cloud will make it even easier to access it at your own convenience, which can be especially helpful if you are using your mobile phone.
Ensure Your Diary is Organized
Referring back to your diary is an essential way of staying on track with your trading. If things are not arranged in a proper order, then you will find it close to impossible to determine what happened in the past, especially if the past dates back several months. Ensure that you pay attention to detail for each diary entry. You need to save your work according to the date and time of your trade. Also arrange your trades in folders, each folder denoting a specific asset. In addition, include the entry value and that of the expiry as well. Finally, any indicators that you chose should also be written out, and including as many pictures as possible helps. Pictures, speak more than words can.
Create a Watch list
In addition to noting every trade that you did in the day, ensure that your diary has a section where you can create a watch list. This watch list will include information on the trades that you would like to explore in the future, and you can even carry out some analysis to see how profitable they could become. Usually, these will come to light as you are going through your regular planned trades, and if you do not note them down immediately, it is likely that you could forget them. Create detailed notes so that when you trace back, you have a clearer idea of your mindset at the time.
Put Down Some Ground Rules
Be disciplined with yourself and create some rules that you will abide by as you trade. These should include the risk that you are willing to take, the amount that you can trade in each day, and how you will protect yourself.