Trading is a performance sport and in any activity where we desire to excel in, it is important that we keep track of our performance. Hundreds of trades over many years contributes to the health of your trading account and it is of utmost importance when there is a need to review your performance, you have something to fall back on. And I do not mean from memory. A trade log offers you access to the period when you are trading well and when you are not. You will be then able to pick out the reasons behind those periods and make adjustments accordingly to further improve your trading.
Another good reason for having a trade log is that it will police your trading and ensure you stay disciplined. If you resolved to write down every single trade that you took, you will know consciously the time when you break any trading rules. This effort to ensure that you do not ‘cheat’ (since you HAVE to write something whenever you take any trade) will help you to stay calm, focused and prevent you from swaying from your rules. We know that for many traders, it is often a few occasional deviation from their rules that caused huge damage to their accounts. Thus, if you can even catch yourself FIRST before you commit those trading sins, you will be doing yourself a huge favour and be even more profitable in the long run.