Updated: May 9
In the next post i want to talk about one of the most important aspects in trading (maybe the most important) - Trading Journal.
Dr Alexander Elder used to say "Show me a good records and i will show you a good trader".
You can't be a good trader without tracking your performance.
As the legendary Dan Pena said - "WHAT GETS MEASURED GETS BETTER!".
You need do document each one of your trades in order to do back tests and ask yourself the following questions (There are more questions, I only mentioned some of them):
Find your Edge
Where you are wrong
What is your weakness,
What is your Strength,
What is your most profitable/loser strategy
What is your average hold time in a trade
What is your win rate
And much more.
Trading Journal will help you to save entry&exit graphs of each trade so you can learn from your past trades.
In a trading Journal you need to write description about every trade, believe me, it will help you a lot in the future, you will identify recurring mistakes and you will fix them shortly.
I know, it's a bit annoying to track each trade and It takes some time to maintain it
but unfortunately, there are no shortcuts, if you want to be a pro, you need to think and act like a pro, and that's what the pro do, maintains a detailed trading record.
You can build your free trading journal with Excel/google sheets or pay for professional trading journal platform.
There are plenty of online journals out there, in my next post i will write my recommendation about the trading journal i use so stay tuned!.