Which timezone should you use for trading journal entries?
This is a common question that we get, so we wanted to do a quick blog post on it.
In this post, we will show you what we think and why this can be different than what you use for actual trading.
Does Chart Closing Time Matter?
Let's start with chart closing times for trading, since some traders get confused as to which close works best and how that factors into a trading journal entry.
Chart close timezone mostly matters in Forex, but may apply to other markets like Crypto.
In most trading strategies that we have seen, the closing time that you use doesn't really matter…as long as you are consistent.
So if you use a New York close chart, always trade with a NY close. Don't switch to a London close chart in the middle of trading.
Some traders will tell you that it makes a difference…and it may matter for certain strategies. The bottom line is you should do some testing and see what works best for you.
But we believe that the timezone you use for your for your trading journal does matter.
Here's why…
The Best Trading Journal Timezone to Use
We believe that the best timezone to use is your local timezone.
It may require an extra step to convert your broker's server time to your local time, but it's worth it.
Using your local timezone will cut down on any confusion when you are doing your trade analysis.
For example, analyzing your trade entry time can be an easy way to optimize your trading results.
If you notice that a trade entry period leads to an unusually high number of losses, then you can simply avoid entering trades at that time.
When you have to do timezone conversion during your analysis, that also uses up brainpower and leads to decision fatigue. That brainpower is better used for trading.
It's better to do the timezone conversion while you are in data entry mode, rather than having to do it during analysis mode. When you do the conversion up front, it will pay off every time you look at your trading journal.
To convert your broker's server time to your local timezone, simply use an online converter like this one.
Conclusion
Obviously, you are free to use whatever timezone works best for you.
But when you use your local timezone, it's easier to relate your trading results to your lifestyle and daily events.
This can lead to insights about how your lifestyle influences your trading results.
Finally, be sure to stay consistent and always use the same timezone in your trading journal entries. Using different timezones will skew your data and lead to incorrect optimizations.
If you aren't tracking your trade entry times, you are missing out on valuable data. Sign up for RazorJournal and start capturing that valuable information right now.