Trading can be a somewhat complicated process to understand and execute, especially if you are just starting out in the industry. For this reason, it is very important that you are able to key into as many tools and resources you can as fast as you can to help you get a better handle on how things work here.

One of the best tools you can employ to help improve your trading experience is a trading journal.

As a new trader just starting out, common pitfalls that you need to avoid include letting your emotions get the better of you, and not planning extensively ahead enough for future trades. Keeping a journal essentially helps you avoid a great amount of these errors and become more proficient at trading.

At its core, a trading journal is a written record of your trading activities that covers details like your strategy for development, your risk management plan as well as your execution method.

By keeping this record, you are better able to hold yourself accountable for your trading decisions, you become more careful and disciplined with your trading decisions and it helps you spot trading patterns that work for you more quickly.

To use a trading journal effectively and efficiently, the very first thing that is required of you is that you be very observant and watch the market very quickly. From here, you can go on to start documenting your thoughts and possible strategies you could execute to generate profitable traders.

Once this is done, you can implement the most appropriate tactics for you and document your results. For effectiveness, make sure that you record all your successes and failures equally.

To start out, you can check out all the different types of trading journals you could keep.