Trading can be a complex and challenging endeavor, but with the right tools and mindset, it can also be highly rewarding. One such tool that can help traders improve their performance and find their edge in the markets is a trading journal.
Thread π§΅β¬οΈ
Thread π§΅β¬οΈ
In this thread, we will deep dive into and understand how to maintain a trading journal. Trust me, if you start recording all your trades after the first 100 trades/Quarter you will start to see a behavioral change in you as a trader.
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A trading journal is a record of your trades, including the reasons behind why you entered or exited a trade, as well as your thoughts and emotions at the time.
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Itβs a valuable tool for traders, as it allows you to review your trades, identify patterns, and improve your overall trading strategy.
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A trading journal can help you in several ways: it allows you to identify your strengths and weaknesses as a trader, find an edge in the markets, and stay disciplined by holding yourself accountable to your trading plan.
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By recording your reasons for entering or exiting a trade in your trading journal, you can make sure that you're not making impulsive trades based on emotions.
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For example, if you're feeling anxious and considering exiting a trade early, you can look back at your trading journal to see if your original plan was to hold the trade for a longer period of time.
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You may also notice that you tend to have better results trading during certain times of the day or when certain market conditions are present. By understanding these patterns, you can tailor your trading strategy to take advantage of these situations.
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There are several reasons why you need a trading journal: it helps you identify your strengths and weaknesses as a trader, find an edge in the markets, and stay disciplined by holding yourself accountable to your trading plan.
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Now that you are convinced that we all need a trading journal to improve our trading then what's next? How to maintain it.
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I will divide the process of recording (journaling) the trade in 3 parts
(1) Before you enter a trade
(2) When you are in the trade
(3) When you exit a trade
I will share what you should record in all the 3 phases
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(1) Before you enter a trade
(2) When you are in the trade
(3) When you exit a trade
I will share what you should record in all the 3 phases
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Phase-1 | Before you enter a trade
Make sure to include your analysis of the markets and the setup youβre looking for in your trading journal. This could include patterns, S&R, breadth, or any other technical tool that you use to make trading decisions.
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Make sure to include your analysis of the markets and the setup youβre looking for in your trading journal. This could include patterns, S&R, breadth, or any other technical tool that you use to make trading decisions.
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Also, include a quick overview of potential trading setups in your journal. This could include the entry and exit prices, stop loss and take profit levels, and position size.
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Phase-1 | During and after the trade, record the following info:
1. Date & time of the trade
2. Asset traded
3. Entry and exit prices
4. Position size
5. Reason for entering the trade
6. Stop loss, profit levels, and actual results.
7. How where you feel during the trade
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1. Date & time of the trade
2. Asset traded
3. Entry and exit prices
4. Position size
5. Reason for entering the trade
6. Stop loss, profit levels, and actual results.
7. How where you feel during the trade
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Don't forget to include any additional notes or observations about the trade, such as your emotional state at the time or any external factors that may have influenced your decision.
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After youβve completed a few trades, take some time to review and analyze your journal. Look for patterns or trends in your trades, such as which types of trades tend to be more successful or which time of day you tend to perform better.
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Use this information to adjust your trading strategy and improve your overall performance. For example, if you tend to have more successful trades during a certain time of day, try to focus on trading during that time.
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In conclusion, journaling is a powerful tool for traders because it helps you to review your trades and improve your overall trading strategy. By using a trading journal and making adjustments based on your strengths and weaknesses, you can find your edge in the markets.
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A trading journal is just one tool that can help you find an edge in the markets. As you start maintaining a trading journal, you will observe and feel the importance of the trading plan, mastering one than being the jack of all, position sizing, and other concepts
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That's a wrap from Trading Journal!
Let's reach more learners like you with this thread and let me contribute to the learning curves of more people like you. Kindly retweet if you enjoyed this article.
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Let's reach more learners like you with this thread and let me contribute to the learning curves of more people like you. Kindly retweet if you enjoyed this article.
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Now you have many reasons and ways to stay connected, so let me give you a few.
Visit --> thenoiselesstrader.com
Visit --> thenoiselesstrader.com
That's a wrap from Trading Journal!
Let's reach more learners like you with this thread and let me contribute to the learning curves of more people like you. Kindly retweet if you enjoyed this article.
Let's reach more learners like you with this thread and let me contribute to the learning curves of more people like you. Kindly retweet if you enjoyed this article.
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