What is Journaling in Trading? (From Dr. Rezvani’s Perspective)

Journaling in trading, according to Dr. Rezvani, is a systematic and structured process for documenting all aspects of a trade. This process includes recording all decisions, emotions, market conditions, and final results of each trade. Dr. Rezvani believes that journaling is not only used as a tool to log trades, but also serves as a mirror to review a trader’s psychology, identify mistakes, and improve strategies.

He asserts that journaling helps traders gain deeper insight into their decisions and utilize their experiences for growth and advancement. Dr. Rezvani emphasizes that without accurate and regular recording of trades, traders will not be able to recognize their strengths and weaknesses, which can lead to repeating the same mistakes.

How to Journal in Trading from Dr. Rezvani’s Perspective

Dr. Rezvani suggests a specific method for journaling that includes several key parts. He stresses the importance of accuracy and transparency in recording all information related to a trade. Below are the key steps for journaling based on Dr. Rezvani’s recommendations:

1. Record Basic Trade Information

In this section, all details related to the trade must be recorded, including:

• Date and Time of Trade: Log the exact times of entry and exit.
• Trading Symbol: The asset or currency pair traded.
• Type of Trade: Whether it was a buy (Long) or sell (Short).
• Entry and Exit Prices: The exact prices at which you entered and exited the trade.
• Trade Volume: The number of units traded.
• Stop Loss and Take Profit Levels: Specify the levels where you set your stop loss and take profit.

2. Reasons for Entering the Trade

Dr. Rezvani emphasizes that each trade should be based on a logical and well-substantiated analysis. Therefore, in this part, the reasons for entering the trade should be precisely recorded:

• Technical Analysis: Was your decision based on chart patterns, Fibonacci levels, a break of resistance or support?
• Fundamental Analysis: Were economic news or financial reports a factor?
• Market Psychology: Did the overall market condition, mass emotions, or fears and greed influence your decision?

3. Emotions and Trading Psychology

One of the most important sections that Dr. Rezvani focuses on in journaling is recording the trader’s emotions at the time of decision-making. He believes that recognizing personal feelings such as fear, greed, anxiety, and confidence during trading helps improve a trader’s psychology.

• Emotions at Entry: What were you feeling before entering the trade?
• Emotions During the Trade: Were you stressed or anxious while the trade was open?
• Emotions After Exiting: How did you feel after exiting the trade? Were you satisfied with your decision?

4. Trade Outcomes and Performance Evaluation

In this section, the final results of the trade are recorded:

• Profit or Loss: The exact amount of profit or loss in the trade.
• Analysis of Outcomes: Was the trade successful? What factors contributed to its success or failure?
• Strengths and Weaknesses: What lessons did you learn from this trade, and what points should you consider for future trades?

5. Periodic Review

Dr. Rezvani recommends that journals should be reviewed periodically (e.g., weekly or monthly). This practice helps traders better understand their trading patterns and apply necessary adjustments to their strategies.

Example of a Trading Journal Based on Dr. Rezvani’s Method:

Conclusion

Dr. Rezvani believes that if journaling is done correctly and regularly, it can become a key tool for long-term success in trading. Journaling not only helps traders better evaluate their decisions but also allows them to learn from their mistakes and improve their trading strategies. This process helps the trader to avoid emotional decisions and look at the market with greater discipline and order.