Why Keep Atrading Journal

Why then if it is so important many (I should say most) traders ignore it? There are a number of reasons but the main one is because they are not taking trading seriously enough to consider it as a BUSINESS. However, the unfortunate outcome is Dez Bryant Thanksgiving Jersey “if it is not a business, then it is a hobby and as with any hobby, you lose money”. In case of t make you rich. Think of it this way, as a trader you will have to become accountant, Why is it so important? The simple answer is we have to develop a learning loop. A learning loop is an attempted performance, followed by specific feedback about the success/failure of the performance, followed by renewed efforts that incorporated feedback (See Figure 1. The Learning Loop). In another words, we build our skills on examining our practices, performance, behavior, gaps in knowledge and so on. It is a common practice in other professions (medical recordssan diego Chargers jersey
, student performance reports, etc), in sport (weightlifting in front of the mirror, ski skaters tape their performances, etc) and it is vital in any business (accounting records, KPIs, etc).
analyst, manager and secretary.
Furthermore, self-discipline becomes vital when there is neither boss nor enforceable rules in place. The bottom line is you need a Trading Journal to keep yourself organised and accountable. And believe me when you start writing your mistakes on paper you would think twice about breaking rules or repeating mistakes. This is what we call a learning loop, otherwise you simply run in circles repeating the same mistakes till you run out of money!
We will give you a sample Trading Journal, but while trading statistics (entry/exit dates and price, profit, etc) might be common for all traders, the rest of the journal has to be customised. There is no point recording numbers that do not make sense to you or are not important to your trading system or style. The last and probably the most important point: every time you identify a weakness or gap that affects your trading performance, ACT on it. There is no point keeping records if you are not going to use it in improving yourself and in turn your business. Remember, this is a continuous journey and you have to help yourself to develop in your new profession (if you see yourself as high school student as compared to Warren Buffet, then imagine how many years of study and practice you have to go through).
In our example we combined daily routine and Trading Journal in one document. You can format it the way you think it would work for you.

Your Trading Journal has to be based on your Trading Plan and provide you with a continuous feedback on your performance (both trading and emotional).
You should also remember that your aim is to reinforce your strong points and identify your weaknesses. If you do not have a trading plan or trading system examining as yet your Trading Journal will help you to identify your strong points, what you like and don’t like about trading, what time frame you like tocheap nfl jerseys
trade and why, and so on. This information will help you to critically review what sort of trader or investor you are or maybe you should avoid trading altogether.