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Why should I use a trading journal?
Journaling is black and white – you either do it, or you don’t! Those that do, understand the value of this skill – it provides a very useful tool. For self diagnosis within your trading business. Ultimately, your job as a trader is relatively simple – to execute your trading plan perfectly for each and every trade. Journaling will help you keep on track.
What is journaling?
In its most simple form, a trading journal provides a written summary of the trade, your thoughts about the trade. And overall performance in your job as a trader. This is very different from keeping the results of the trade. By retaining this kind of information. You have a great learning tool that can help you identify and do more of the good stuff – the things that are adding value to your trading. Likewise, it can assist you in identifying some of the weaker and less productive things you are doing – and eliminate them from your trading weaponry.
Your comments may include thoughts on the market. Level of confidence in the trade and why you have selected the respective entry. Exit and stop levels on the position.
Why Do it?
Being able to isolate problems, early on and at their cause, will add value to your trading bottom line almost immediately. A good example of this is what we call language patterns – the self-talk we have with ourselves. An example of this might be “this had better work”.
A simple sentence but reading between the lines. The sentence smacks of uncertainty, desperation, and a level of self-imposed pressure on the trader – none of which are particularly helpful.
Identifying how you think in the heat of combat. So to speak will provide valuable insight into the areas of training and development that you need to focus on and ultimately, fix up.
How to get started
This is a very simple step to put into place – but don’t underestimate its simplicity as meaning it is not important and powerful – it is both. Go grab a one page per day diary and the video in this article shows you how journaling will have an immediate and positive impact on your trading.
Mindset Mastery Course
NOTE: This video is just a sneak peak into our Mindset Mastery Program. What does your trading plan look like? What does the equity line of your trades look like? Is your trading strategy adequately represented in your account? If you’re ready to take the steps to developing a solid trading plan or at least are curious about how others have done it, you can access the full Mindset Mastery Program by clicking here