Many people kept a journal when they were young or still do when they are older. A journal is extremely useful for looking back on events that happened in the past. That way we learn from the mistakes we’ve made before and we see where we’ve come from.
Crypto traders also use a journal. ONE trade journal to be exact. In a trading journal, crypto traders keep track of which cryptocurrencies they have bought and all the important information that comes with it. For example, crypto traders want to become better at trading cryptocurrencies.
Successful crypto traders even swear by using a trading journal. They state that without such a ‘crypto journal’ they would never be so successful.
For this reason alone, it is already interesting to delve deeper into the crypto trading diaries. Let’s take a look at why the use of these crypto trading journals is so popular and how you can keep a trading journal yourself.
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What is a Crypto Trading Journal?
A crypto trade journal, also known as a crypto trading journal, is a document where you keep track of all the information about your purchases and sales.. For many successful crypto traders, a trading journal is an indispensable tool that contributes to their success.
In a trading journal, for example, you keep track of which cryptocurrency you bought, at what price you did it, why you decided to invest, at what price you want to sell the cryptocurrency, and at what price you ultimately sold it. In other words: you keep track of everything related to cryptocurrency trading in the trading diary.
Every crypto trader who uses a trading journal does so in his own way. This means there is no formatSuch a trade journal must comply with this. As a trader, you can therefore use your own version of a trading journal. We will give you a number of examples and practical tips in this article on how to best use a trading journal.
Want to know more about why keeping a trading journal is so important? Then you can watch the video below. The moving average clearly explains why successful traders use a trading journal and what you can do to keep one yourself.
How do you make your own trading journal?
A trading journal can therefore be a useful tool when you are active as a trader. As a beginner, it can be overwhelming. We are therefore happy to explain step by step how you can set up and maintain a trading diary yourself.
Step 1: Decide where to store the trade record
First you want to look at where you want to keep the trading record and how you want to do it. Many people prefer a trading journal on the cloud. For example, consider Google Drive. The advantage is that you can then access the trading journal at any time and from any device.
On the cloud you use, you can upload a document, such as an Excel or Word file. Within these programs, you can customize the trading journal to your wishes.
There are also programs available online that act as trade journals. You often have to pay to use these programs. Therefore, it may be more economical to put a file on the cloud yourself. At the end of the day, what the trade journal content is about is not its form or appearance.
Tip: make sure to secure your cloud account, for example using two-factor authentication (2FA).
Step 2: Decide what information you want to keep
Successful crypto traders will say that it is best to keep as much information as possible. That’s right, because the more you commit, the better it is for the trading journal’s operation.
In a crypto trading journal you can keep the following things:
- The cryptocurrency you purchased;
- the date of purchase;
- The price value at the time of purchase;
- The number of coins/tokens you have purchased;
- The total amount you have paid for these tokens/coins;
- Did you buy the coins short or long term;
- The reason to buy this cryptocurrency;
- At what level did you place a stop-loss;
- The intended return;
- The date of sale;
- The return that you ultimately achieved;
- The reason you won/lost money;
- How did you feel when you made the purchase;
- How did you learn about cryptocurrency;
- Have others advised you to buy this cryptocurrency;
- Was the market bullish or bearish during buying and selling;
As you read this list, you may notice that you can go a long way in storing information. From number 11, you go deeper into the investment you have made.
Try to decide for yourself what information is useful for you to keep track of. You can find out by playing with the trading journal. Keep track of different information and see over time which information you have had a lot of. It makes it easier and easier to store the right information that you can ultimately do something with.
Are you using an Excel file? Or from a Word file? Then create a table where you want to store this information.
Tip: Search the internet for various trading journals of other crypto and stock traders to find out what data you could keep track of. Then decide for yourself what data is relevant to you and then create a personal trading journal in the software program of your choice.
Step 3: Write everything down when you make a trade
The moment you start buying or selling a cryptocurrency, grab your trading journal. Then enter all required information. Make sure you don’t miss anything because in the end you will benefit a lot if you keep entering the same data consistently. This makes it easier to find connections between different investments.
It is important that you do this for all transactions. Ultimately, you want to evaluate the transactions to draw conclusions. This will only work if you have as much information as possible at your disposal.
Tip: Make it a habit to keep track of everything in your trading journal by using only one and the same trading journal.
Step 4: Evaluate your trading journal every week
Decide for yourself which day you carry out an evaluation each week. Many traders do this at the end of the week, on a Friday or Sunday. During the evaluation, you grab your trading journal and check how your trades are doing. Has an investment achieved its intended purpose? Or has a stop-loss limit been reached? Then you act on this and write down what actions you have taken.
Tip: Set a reminder in your phone so you don’t forget to review your trading journal weekly.
Step 5: Learn from your mistakes by writing them down
Over time, it becomes easier to make connections. This way you can see where things often go wrong or right. Based on this research, you can learn by learning and become a better and better negotiator.
Just a few examples to make it clear.
- Are you primarily losing money when investing in cryptocurrencies that others recommend? Then the lesson could be to do your own research in cryptos.
- Are you making a lot of money with projects that fall within the metaverse sector? Then the lesson could be that this is where your specialty lies and it is therefore best to continue within this niche.
- Do you mainly lose money when you invest on days when you are very stressed and busy? So the lesson could be that you can invest better when you have more peace of mind and are relaxed.
- Do you make a lot of money when you invest during times of bull markets? Then the lesson could be that in the future it is better not to invest in times of a bear market.
Finding these patterns will only work if you keep a trading journal for a long time. So don’t jump to conclusions immediately after the first week, but wait a few months for this. In this way, you ensure that the result is reliable.
Tip: write down the lessons in an online document that you can easily access from your smartphone and laptop. That way, you make it easier for yourself to actually apply the lessons.
Step 6: Look at your lessons before making a new trade
Are you planning to buy or sell a cryptocurrency? Then read through the list of all lessons before actually doing the transaction.
We often think that it is not necessary because we remember the lessons. However, this often turns out not to work in practice, and crypto traders make the same mistakes over and over when they don’t write them down and read them through before making a new transaction.
Tip: During your weekly review, you can look back at the trading activity you have done that week. Then also take a critical look at whether you have applied the lessons learned from that week’s transactions.
Do you find it boring to keep a trading diary?
Many crypto traders start keeping a trading diary full of energy, only to never use the diary again after a few months. We understand that keeping a diary like this can be tedious. You may prefer to spend the time on research.
It can be more fun to see the progress you’ve made since using a trading journal. This will show you why using a trading journal for every trade can be so useful.
Therefore, keep an overview of the return you have achieved each month, and try to draw conclusions from this. This makes keeping a trading journal more fun and easier!
In the video below, a crypto trader tells you more about his trading journal. If you want to know more about what you can keep in a trading journal, it is definitely recommended to watch the video below.
A crypto trading journal is an indispensable tool for anyone who wants to achieve success in the crypto world. In such a trade journal, you store all the important information about a trade that you carry out. Why? Learning from the mistakes and successes you achieve. When you do something successfully, you can do it again in the future. And does something go wrong? Then you can make sure you don’t make this mistake again in the future.
What such a trading journal looks like is entirely up to you. We have given you several practical tips in this article on where to keep a trading journal and what information to keep in it. It is especially important that you use a long-term trading journal and return to it regularly to learn from your mistakes and celebrate and repeat your successes.
Looking for more information or have questions about the trading diary or other crypto topics? Or would you like to meet other crypto enthusiasts? In our product’s free Discord channels Money Mastery from AllesOverCrypto you can ask questions and meet thousands of other crypto enthusiasts. Have other crypto-related questions? The easiest way is to look up your question in our FAQ. Another thing you can do is google your question + All about crypto. Be sure to let us know your thoughts on the trade journal tips we talked about in this article.
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