Example of How Do You Write a Journal? - Trading Journal Meaning
Track all your trades in a trading journal. By following this simple, easy to follow tip, you can easily improve your trading results. Here is how you do it:
Step 1 - Write down WHY you are making a trade PRIOR TO opening a trade.
Before opening a trade position, write in a trading journal the reasons why you are making the transaction. It doesn't have be long; it doesn't even have to be in compete sentences. Just write a few key reasons why you are making this trade.
Be honest with this journal. If you are honest, it will prevent you from making the biggest mistakes in your trading. If you see that you are making the trade transaction because of anything other than a sound Indices strategy. DO NOT MAKE THE TRADE TRANSACTION!
If you as a trader make a losing Stock Indices trade, do not open another trading transaction immediately so that to make profits to neutralize the losses you have made, this is referred-to as revenge Indices trading, do not revenge against the market. Shut off the computer, walk away, & take a cold shower. Remember that you will never lose money that you don't put in. A winning Stock Indices strategy isn't only about how much you win, but how much you do not lose.
Step 2 - Write down how you will exit the trade PRIOR TO making the trade transaction.
Do not get trapped with a great entry Stock Indices strategy without an exit trading strategy. Your strategy should have both great entry and exit strategies. One is use-less without the other.
But you ask, Why bother? I know my Stock Indices exit strategy. Why do I have to write it?
Well, reason is this: humans are at best irrational, impulsive, & emotional creatures. If you have your exit strategy written, you have a frame of reference when you get out of a trade position. You will refer to your journal BEFORE exiting a trade. If you are closing a position for any reason other than your original Indices exit strategy, you must ask yourself why?
Your trading journal will save you more money than you can imagine. It will prevent you from making impulsive moves, which is usually why people lose money in Stock Indices.
Step 3 - Write down why you exited the trade position.
This should be the same reason that you wrote down in step 2. If it is not, it is up to you to analyze it. The most common reason why people deviate from their strategy is lack of discipline. Your Stock Indices journal will be looking back at you with glaring evidence of precisely why you are not a winning Indices trader.
Step 4 - How to Analyze the trading results
You must learn from your mistakes in Indices. This is the best way for anyone to improve their profits. Everybody makes mistakes, but the great Stock Indices traders are able to learn from them and not repeat.
And the best way to learn from your mistakes is to document them in a journal. A few years down the road, you can still look back and realize that you are still making the same errors you were when you first began trading Stock Indices online.
This information can't be found in any book or seminar. Your Stock Indices journal is personal and is uniquely you. Your personality will determine the type of Stock Indices trader you will become, & also will determine the type of mistakes you will make.
Not only does your journal highlight your weaknesses, it will reveal the trading transaction that are the most lucrative. After a little while you'll see the type of Stock Indices trading setups that make you as a trader most equity, & a trading pattern will emerge. Do not let this information on your journal go to waste.
You should do every effort to understand why those trade transactions went well and try to replicate it as often as possible. Profitable traders know their strengths & weaknesses. They play on their strengths and try to minimize their weakness.
Do not get lazy & forget to write in your trading journal. Documenting your thought process is the fastest & surest way to get better at Stock Indices trading. Do this consistently, & you'll learn more about your habits than you can imagine.
Your trading goal is to identify and break the bad habits as soon as possible. If you as a trader realize that you always cling on to a losing Stock Indices trade transaction too long, you should do everything in your power to prevent this from happening again.
Summary
Your Indices journal is gold. It contains a wealth of information that will play a vital role in your success as a trader.
We strongly urge you to use it for at least one month. If it has not helped improve your profits in 30 days, then feel free to stop.
But be sure to try it prior to deciding not to. It may be just the tool needed to push your trading to the next level to becoming a successful Indices trader.
