In the absence of good bitcoin trading techniques, you rely on your emotions to be able to amass profits on a daily basis. However, it has been said that “emotional investment” is far from being the ideal generator of gains. And by pushing the search further, you will expose yourself to tricks like “XYZ indicator” or “multi-screen editors”. Know that the key to success in investing in cryptocurrencies lies in discipline, the establishment of a trading journal.
What is a BTC trading journal?
Never make the mistake of confusing “trading journal” with “brokerage account statement”! Admittedly, the two may present similarities, but the newspaper may well go beyond that.
To put it simply, the bitcoin trading journal presents itself as a recording medium. The latter can indeed serve as a container for the summary of your background and your performance as a trader.
Basically, the BTC trading journal should include fine details like your motives behind a trade, or not. This must reflect in particular the logic underlying the transactions, knowledge of cryptocurrency market trends, etc.
In short, the trading journal is a lethal weapon available to a real trader.
In practice, a cryptocurrency trading journal does not require the use of any application. It also does not require a complex program that will strain your budget. The most proven traders are satisfied with a simple Excel file or a Google Sheets for better performance.
What are the benefits of a bitcoin trading journal?
We count approximately 5 benefits.
Strengths and Weaknesses Assessment Tool
Let it be clear, once your money is invested in the market, you will not be entitled to any trial or simulation. If you plan to test the water temperature first, you might as well do it before. You might as well use the bitcoin trading journal to observe and judge the behavior of your transactions on the market. Also, you can evaluate your trading performance, identify your strengths and weaknesses through this tool.
As for the evaluation itself, you will be able to make impartial observations. The success of this enterprise will begin with questions such as:
” Have my swing trades failed more than my long positions? »
” Aren’t my short sale trades worth doing? »
” Am I missing out on more money by HOLDing rather than taking profits? »
This is a logical continuation of the advantages mentioned above. Because in a bitcoin trading journal you can record everything, even the numbers. Suddenly, the trader in possession of this support will have the facility to evaluate his performances, to rethink their strategies and to modify their positions for the sessions to come.
Keep in mind that any measurable goal automatically becomes an achievable goal.
Behavioral pattern recognition
The other strength of the journal is the ability to reflect on the trader’s trades and identify unconsciously developed patterns. This is not the case with emotional and behavioral patterns which present too many limits. Sometimes, because of them, the private bitcoin trading journal trader struggles to develop suitable strategies.
Strengthening the coherence of strategies
Here, you have at your fingertips the combination of the two previous advantages. Indeed, once the quantification of the trading performance has been carried out, several doors will open to you. Among other things, the possibility of developing strategies on the basis of figures. Or the appropriation of this practice which will certainly lead to consistency in trading.
Once this consistency is achieved, the trader can easily focus whether the market is trending down or conditions become uncertain.
Ban on impulsive transactions
Strongly the zen attitude in bitcoin trading, a cryptocurrency known for its volatility. Equipped with a journal, the BTC trader will avoid making spreads to earn cryptocurrencies on the market. Something that happens regularly when a plan goes wrong. Indeed, many of us tend to react impulsively when this happens.
However, instinctive reactions do more harm than good. They are usually the cause of our losses, and more serious situations caused by impulsive trading. If you’re going to eliminate emotion from your equation, now you have the solution: the trading journal. Whether you are in bitoinc trading, cryptocurrency trading, or others, know that this tool will give you a better overview of your practices.
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it