When learning how to trade forex, CFDs or any market, understanding the path traveled is the key to successful trading。By keeping a transaction log, it will be much easier to track your successes and errors。

What is a transaction log？

You can record your transactions and decisions, as well as any relevant analysis and comments。Keeping a transaction log is one of the best ways to track not only success but also failure。By recording all trading actions and results, you will be able to grow quickly and learn from your mistakes。

How to keep transaction logs？

1. Analyze and upgrade trading strategies
2. Avoid excessive trading
3. Analyze trading platform history
4. Retained transaction log

Analyze and upgrade trading strategies

As we all know, a reliable trading strategy is essential for success。It is particularly important for traders to use multiple strategies because no one strategy is suitable for all trading situations or market conditions。In order to trade successfully, it needs to be reviewed and adjusted at the time of testing。

By recording each strategy and when it was used, you can track results, analyze any errors, and upgrade strategies for future trades。

It is also beneficial to test several theories and write down every step of the thought and action process。If you neglect to track strategy implementation and its results, you will miss many learning opportunities。In turn, your profits and even your principal are at stake。

Avoid excessive trading

Some strategies, such as scalping, use up to 40 signals and open multiple positions per day。However, this situation is not common。If you find yourself with 10 to 15 trades per day, you can classify it as overtrading。This prevents you from focusing on individual trades and a detailed analysis of the market。Please check your transaction amount frequently。

Analyze trading platform history

Factors such as the type of transaction, the size of the transaction, the currency pair traded, and the opening and closing times should be indicated in the transaction log.。This can display personal trading statistics and averages to track performance in real time。This will also allow you to determine which currency pairs are more successful and judge whether you are better suited to a calm or volatile market, you can also track the time that best suits your trading preferences。

Retained transaction log

Additional comments are essential to understanding each process。By paying attention to the reasons behind certain choices or changes that have occurred, it will be easier to understand what the trend is when reviewing your trading history, and you can adjust your trading strategy accordingly。

Keeping a transaction log is simple and can be done in a book, in an online document, or even in an Excel spreadsheet。The key information you need to add includes:

• Dates
• Opening and closing time
• Currency pairs
• Admission price
• Stop Loss Price
• Take Profit Price
• Closing Price
• Position size
• Trading Strategy
• Trade type
• Profit and loss
• Additional Notes

Once you've been tracking transactions for weeks or more, it's important to review the transaction log frequently.。This will give you an idea of which initiatives are good and which are wrong, and determine how to improve future trading。