My recent posts cause got focused on using journals to amend trading. Everyone has a periodical format that (one hopes) plant best for them. Here I'll propose a format that I honour peculiarly useful.
The argue I'm offering the proposition is that I boot the bucket along to honour that traders role journals inward ways that are less than constructive. The greatest mistakes inward journaling, I find, are:
1) Lack of Specifics - The periodical contains vague, full general intentions such as, "I demand to merchandise less aggressively", without whatever indication of how the trader volition attain this. If the intent is to merchandise less aggressively, thence the periodical should create a specific goal. An event from my ain trading would be: "I'll move inward positions alongside 1 unit of measurement in addition to scale inward alongside a minute unit of measurement on the starting fourth dimension pullback inward NYSE TICK when my seat is profitable." Notice how this makes the full general intention thence much to a greater extent than concrete. Now I cause got something constructive to implement in addition to tin flame degree myself on the implementation. If I only say, "I demand to merchandise less aggressively", that's non goal-setting. That's Monday-morning quarterbacking, or me exactly wagging my finger at myself. Self-criticism past times itself never improved anyone: it's self-criticism followed past times constructive work solving that does the trick.
2) Focus on Negatives - The worst journals are the ones that but vent fearfulness or frustration. They recite every bad or missed trade, everything that went incorrect during the day. Not only is at that spot an absence of constructive suggestions for improvement, but at that spot is also an absence of ideas re: what the trader has done right. The persuasion is to larn from what you lot exercise right, non exactly what you lot exercise wrong. Indeed, focusing on strengths volition heighten motivation in addition to the sense of competence in addition to efficacy. By staying only problem-focused, it's all every bit good slow to drain motivation in addition to optimism.
So, how tin flame nosotros amend the inward a higher house inward a format for a trading journal?
My proposition is starting the periodical alongside a listing of your specific goal(s) for that trading day.
Those goals should be: a) chosen from your previous day's or week's trading; in addition to b) taken from your trading rules. The destination should live on either to amend a fault you lot made, or to build upon something you lot did right. The destination should state specifically what you lot human face yourself to exercise during the coming day, thence that you lot tin flame rehearse the destination inward your heed earlier the marketplace seat opens in addition to thence that you lot tin flame evaluate how you lot performed on the destination at the terminate of the day.
Notice that, earlier creating the journal, it's of import to write out your trading rules inward advance: everything that you lot desire to follow to merchandise well. You can't concur yourself accountable for a dominion that you lot don't create; that's perfectionism, in addition to it's non helpful either. Rules should clearly state how you lot desire to size positions, move inward them, leave of absence them, fix stops, fix exits, scale inward in addition to out of trades, etc. Your periodical volition rails how good you lot follow these rules, non exactly whether you lot brand coin or not.
So you lot laid out alongside rules, notice when you lot exercise a peculiarly expert or pitiful project next the rules, in addition to thence fix goals for the adjacent twenty-four hours based on the expert or pitiful performance. The periodical entry thence gives yourself a degree at the terminate of the twenty-four hours for how good you lot performed on your goals in addition to why you lot earned that grade. Include your daily P/L alongside your grade, thence that you lot tin flame speedily encounter how your functioning rises in addition to falls alongside your grades.
The periodical keeps you lot constructive, keeps you lot learning, in addition to keeps you lot working on the things that are close important. It is non a tool for but rehashing the twenty-four hours or voicing your feelings; it is your tool for self-development: your way for coaching yourself.
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