Importance of Trade Journalling. Sharpening the Saw

 

Trade Journalling

• Underestimating this step often lead to failing in stock market in general journal help understand if you did a mistake e.g. broke a rule ,why you did that ? What should have been done? etc.

• Journal help you correct mistakes and take better trades next time.

• Journal help you also know what you did well on a trade.

• Without journal you would never bother to know it and blame everything else.

• To journal is to go back to your own trader mind (black box) and get to know     yourself better as a trader.

• You just cannot improve your trades unless you know what went well or what went wrong 

• Journal record lot many more  parameter not in broker provided p&l.

• Trade performance analysis eg. expectancy, drawdowns, sharpe etc also    could be derived from journal.

• Not having journal mean no trade outcome analysis is like being batsman in a last overs of a match without knowing the score needed to win.

• Journal a bad trade is harder than recording a good trade as you like to forget your bad experience.

• Journal is one of the way a trader sharpens his ‘saw’