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Keeping today simple with some perspective on using a trading/investing journal.
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Let us cover some basics.
The Importance of a Trading Journal
Today, I want to discuss a crucial but often overlooked tool in the arsenal of successful traders: the trading journal. Maintaining a detailed trading journal can significantly enhance your trading performance and help you achieve your financial goals. Here’s why you should consider starting one today!
What is a Trading Journal?
A trading journal is a record of your trades, including details such as entry and exit points, the reasoning behind each trade, position size, and the outcomes. It’s not just about keeping track of wins and losses; it’s a comprehensive tool for reflection and improvement.
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Why Keep a Trading Journal?
Performance Tracking:
By documenting your trades, you can analyze your performance over time. Identifying patterns in your successes and failures can reveal what works and what doesn’t.
Emotional Reflection:
Trading can be an emotional rollercoaster. Recording your feelings and thoughts during each trade can help you understand how emotions impact your decision-making. This awareness is vital for developing a disciplined mindset.
Strategy Evaluation:
A journal allows you to assess the effectiveness of your trading strategies. Are certain setups consistently yield better results? Use your journal to fine-tune your approach based on real data.
Accountability:
When you commit your trades to paper (or a digital format), you create a level of accountability. This can help you stick to your trading plan and avoid impulsive decisions.
How to Create a Trading Journal
Choose Your Format:
You can use a simple notebook, a spreadsheet, or specialized trading journal software. Find a format that works best for you.
Include Key Details:
Make sure to document:
Date and Time: When the trade was executed.
Ticker Symbol: The stock or asset traded.
Position Size: Number of shares or contracts.
Entry and Exit Points: Prices at which you bought and sold.
Reasoning: Why you entered the trade (technical analysis, news, etc.).
Outcome: Profit or loss from the trade and any notes on what went well or poorly.
Review Regularly:
Set aside time weekly or monthly to review your journal. Look for trends in your performance, emotional responses, and strategy effectiveness.
Adjust as Needed:
Use your insights to refine your trading strategies and improve your decision-making process. Don’t be afraid to make changes based on what you learn.
Top Stocks For The Week.
SMCI - If we are closing above $44, I think 55-60 looks promising.
$TSLA - I think support can be tested in the coming weeks to dip. (Level is given in the premium section.
Add on equities listed in the premium section
Before you continue, check out a few example readings and videos that could help you organize your thoughts. If you don’t trade and only invest you can still utilize this skillset.
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