How To Use A Forex Trade Journal As The Path To Self Discipline
Forex Investing Live Signals is set up in a way where subscribers can easily duplicate our success in as little as 10 minutes a day. And when you look at the track records of Forex End Of Day Signals and Set and Forget Forex Signals it would be easy to assume that means all our subscribers are using the service profitably. So, it might shock you to learn that not all subscribers use the service properly and get the desired, duplicable results.
In this post I want to go over why this could happen. More importantly, I want to go over what you can do to develop the self discipline necessary to use the Forex signals successfully. In short, how to use a Trade Journal as the path to self discipline.
Psychologically speaking, there are two things you must trust if you are going to succeed with our signals:
- You must trust the trading signals
- And you must trust your ability to trade the signals perfectly.
Obviously, if you are going to use our signals you must trust that our signals are going to be profitable over time. Otherwise, what would be the point of subscribing? But trust in the signals is only part of the equation.
Even if you believe in the signals long term profitability, you STILL need to trade the signals as near perfect as possible during live market conditions when real money is on the line. You need to be able to control your emotions of fear and greed, and stick to the instructions. Any deviation from the instructions should be seen as a mistake… regardless of the outcome.
Basically, to get similar positive results as we do over the long term, you need to make as few mistakes as possible.
In a previous post, I talked about how keeping a trade journal can help you gain confidence in the signals. Along that same line, keeping a trade journal can also help you gain confidence in yourself and increase the trust you have in your abilities to trade the signals as close to perfect as possible. This is how you get similar results to ours.
A Trade Journal should not just be a record of the trades you take and their results. You should also record your thoughts and feelings at the time of placing the trade… and your behavior before, during and after the trade. You need to be able review your psychology during the trading and identify mistakes you are making so you can grow as a trader and stick to the trading instructions.
The truth is, as a subscriber of Forex Investing Live, you are not making the trading decisions. You do NOT need to decide when to enter the market, when to move your stop loss or when to manually exit a trade. However, you do need to think and act like a trader and keep your emotions in check in order not to stray from the instructions.
And keeping a trade journal can help you grow as a trader, even when not making the trading decisions.
- Imagine getting a signal to BUY a currency pair… but you “feel” this is a bad trade. You might be tempted to skip the trade.
- Imagine being told to move your stop loss to breakeven +10 pips… but you are “afraid” you might be stopped out prematurely. You might be tempted to leave your stop where it is.
- Imagine being told to do nothing… but you “feel” price has gone as far as it is going to go. You might be tempted to exit the trade prematurely.
- Imagine being told to manually close a trade… but you are “afraid” you might miss out on some profits. You might be tempted to stay in the trade.
In each case, and others that come up when in the live markets, you might be tempted to interfere with the instructions given. Sometimes that might work in your favor, and sometimes it might not. But in either case, you are putting yourself in a position to get very different results than the service.
By combining both the trading results with the emotions, feelings, thoughts and actions (both good and bad) that occurred during the trade… you can create a mirror that reveals your trading virtues and mistakes. You can then learn how your role effects trading the signals, and work to get to the point where you trade the signals perfectly.
Important: If you deviate from the trade instructions, keep a record of what would have happened if you stuck to the the instructions given. Some trades might work out better, and you’ll reward yourself for bad behavior. But over the long run, you’ll probably end up losing money because of your interference with the signals. Nothing motivates changing your bad trading habits like seeing how much money you missed out on.
In conclusion, the evolution into a disciplined, profitable signal follower is accelerated by eliminating mistakes. If you want the same results as the service you are following, and you should or else you would not have joined, you must follow the signals as close to perfect as possible. And a Trade Journal is an excellent tool in helping you identify and avoid mistakes while trading the signals.