Trading journals tin last effective tools inwards changing trading behaviors. They tin also last helpful inwards tracking as well as working on performance. Influenza A virus subtype H5N1 piece back, I wrote on the theme of formatting journals for trading success. The stimulus for that transportation was the realization that traders frequently utilization journals inwards ways that are non constructive: but equally tools to vent frustration as well as recount trading problems.
When I foremost began learning to trade, I used journals inwards ways dissimilar from the above. Each 24-hour interval I reviewed major turning points inwards the stock indexes as well as observed how indicators as well as correlated indexes behaved. The do consisted of identifying--in retrospect--the trading opportunities that were best as well as the data that powerfulness convey set me into those trades.
In a sense, I used the mag to contrary engineer markets.
The journals consisted of pages as well as pages of annotated charts. Although I did non utilization the term at the time, the destination was designing recognition.
Sure enough, patterns began to recur inwards my mag entries. That is how I learned virtually confirmations/non-confirmations as well as their roles inwards continuations as well as reversals of moves. That's also how I learned virtually intraday persuasion as well as NYSE TICK; the business office of book inwards estimating volatility; as well as the distinguishing features of breakout trades, hit days, as well as tendency days.
In the beginning, I didn't know what to await for. I spent fourth dimension alongside many indicators (including many of the mutual ones included inwards charting programs, equally good equally nautical chart patterns as well as cycles) that added piddling value to my designing recognition. It was the patterns that recurred over fourth dimension that became my focus.
I realized that if I could exactly divulge a few stable patterns, I could operate on recognizing them inwards existent fourth dimension as well as sustaining profitability.
I spent over a twelvemonth on those journals earlier I e'er placed a trade. The charts are withal organized inwards folders inwards my cabinet for reference.
One of my goals for 2010 is to repeat that learning procedure as well as larn solely novel patterns. As I noted a piece back, every 24-hour interval the marketplace teaches us lessons. The challenge is beingness prepared to larn from them...and as well as then relearn them.
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