One of the advices you will always receive from experienced binary options traders is that you need to keep track of your previous trades. It is one of essential thing that will enable you to learn from your own mistakes and to learn much faster. Also, if you are already experienced trader you can appreciate keeping notes of your trades, since they can get quite complex. That’s why traders usually keep binary options diary.
Three good reason to keep a binary options diary:
- Like stated above trades can get very complex. Usually you will be making several trades a week. This means that in very short time you will be unable to track your trades in your mind which can prove risky, since it makes you more prone to mistakes and greatly impedes your learning
- Keeping a diary can help you to learn how to better control your emotion. This may sound weird, but it makes sense. Every entry in your binary options diary should contain information like item or items you are trading, record of your strike price, the timestamp at which you made the transaction, type of contract that was used and particular mood at the time you made that trade. You will see after some time that your emotions can greatly affect your decision making process. When you recognize patterns you can learn to avoid making trades if you feel overwhelmed or just unable to keep focus. Sometimes you will make a trade only because it is a slow week, make sure you note that in you binary options diary
- By taking time to do thorough analysis of your trading history on regular basis you can see patterns of good and bad trades, thus avoiding making same mistakes in the future
You can keep your binary options diary in excel sheet, or online sheet, even an actual physical diary will do. It is only important to keep it somewhere you can reach it easily and use regularly.
Binary options diary is not only about keeping track of your past transactions; you can also use it to plan future transactions. Note information that you learn over the time that can aid you in making future decision. E.g. if you are fan of trend trading you might learn that Apple is introducing new gadget in September, make that note so when come September you can have enough free money so you can make profitable trade with Apple stock.