3 Things Every Crypto Trading Journal Needs

A trading journal is one of the major elements that separates novice traders from professionals.

Trading journals are intended to track the performance and reasoning behind all trades.

In most cases, major trading firms require their analysts to keep a trade journal or notes outlining their reasoning and the technical setup into which they've entered.

Ultimately, trading journals are meant to help identify patterns in a trader's technique that result in losses by highlighting the errors in a trader's judgment.

A look back at the trading journal will tell what went wrong.

Simply put, your trading journal is like holding up a mirror and monitoring the irrational exuberance and absence of management rules.

This brings us to our second criteria every journal needs: trade performance.

If you map out days in which you feel confident trading by all means, note the market conditions down and give a rough outline of what was happening on that given day.

If you are trading more than 2-4 times a month on uncertain days, then perhaps it's best you leave that particular market alone or reassess your risk as the market continues its lower highs or sideways momentum.

A trade journal is a valuable tool with which you can hold yourself to account for the errors you make, and it goes a long way toward weeding out the inconsistencies in your trading style.