In daily life, we have developed coping mechanisms to help us cope with pain. For example, the first time you jumped into the swimming pool, you knew that the water was unbearable. In order to avoid repeating this bad experience, you have learned to soak your toes before jumping. Finally, when we are faced with similar situations, these have become habits and can be handled naturally.

Although we subconsciously develop these knee jerk reactions to make us feel painless, they may also lead us to make impulsive trading decisions. Think about it, how many times have you closed your position in advance, but the market fluctuated by a few points the next day? You may have been defeated by yourself again and again, even though you know that according to your trading plan, you can end your last trading after winning.

That's why you should have a psychological transaction magazine. This is a tool that can help you understand your personality pattern. If you want to know how to get started, here are some tips:

Describe the current market situation

Please describe the current market situation and why your trading settings can work in a specific environment. Ask yourself the following questions: What are the main trends in the market now? Is there any risk? Should I take a deal that meets these themes and risk emotions?

How do you feel?

In addition to the market environment, it also includes your thoughts and emotions when trading. Of course, it may be interesting to write down your first feelings, but at some point, you will realize some behavior patterns. No matter what you write down, it is important to pay attention to these factors that may affect your decision.

Pay attention to the results

Finally, writing down the results of your trading decisions helps to understand whether emotions have a positive or negative impact. Ask some questions about possible situations:

Did you end the transaction early because you felt particularly impatient that day?

It's hard for you to concentrate. Why?

Do you move the stop loss point because your ambition drives you to do so?

You have confidence in your trading philosophy. Have you decided to increase your position?

Remember, the purpose of this is to identify behavior patterns and common consequences. From this perspective, you can determine the negative factors that affect your decision-making and decision. If these situations happen again, it is decided to stop trading. Soon you can build up enough awareness through these behavior patterns to clearly determine what caused your failure pain and prevent these situations from damaging your trading account.