Do you trade options, but still have not created a trading diary? You probably just don’t understand how important and useful diary keeping is for a trader.
If you still do not earn and lose money in the market, then you should definitely take care of creating a diary.
All professional traders have one thing in common – they all keep a trader’s diary.
Why do I need a diary
Over time, the details of important events for you become dull in your memory, you remember the basis, but you already forgot what you felt at that moment. By writing down every deal in the diary, after a week or two, you will remember yourself in the past, see progress, comparing it with the present, and thereby raise your spirits.
It is the Diary that helps the trader to turn the trading experience of one day into the trading experience of ten days. This is well written in the book by Michael Bellafiore “One Good Trade”. An objective understanding of the cause-effect relationships of successes and failures of the past makes it possible to model successful behavior in the future. Any intuition is formed on the basis of experience.
If you really have a burning desire to learn something and achieve success in the financial market, then you should constantly record your achievements. Many traders are grinning at such a thing as keeping records of their trade.
What? To keep a diary? Hah – it’s funny! Why do I need it, I have everything in my mind!
And to lose a deposit after a deposit, to stagnate in one place, to get angry, to throw everything halfway and give up – isn’t that funny? After all, not for the same thing you came here, right?
Trading is work, hard work, and keeping a diary is an essential part of it, along with risk management, a trading plan, without which you are unlikely to succeed.
There are no difficulties in keeping a diary. You just have to record important points of your trading. That’s all.
Criteria for keeping diary entries:
• You should start keeping a diary from the very first days after you have opened an account with a broker.
• Write down your trading strategy and entry rules in the diary, which you strictly observe. The number of transactions per day / month. Risk per trade. The indicators you use. Take a screenshot of each transaction and a description of it.
• Before buying an option, during and after the transaction, it is advisable to record your emotions at this point. Fear, greed, excitement, anger. The psychological state of the trader is extremely important. Feel free to write everything you experience and think!
• Take stock on weekends or at the end of each month. Count how many deals were positive and negative. Which currency pairs are the most profitable and vice versa. On what timeframes and expiration dates are better results. Analyze screenshots, filter out false signals.
As a result, a picture of your trade will be formed. You will clearly see which deals brought good results, what contributed to this and you will probably want to repeat them again. Similarly with negative transactions, analyze them and each time you will begin to make fewer and fewer similar mistakes.
Record your goals. Each time you reread the diary of the trader, you will return to them, remembering what you are going to and why you stopped on a separate section of this thorny path.
It is important to remember that the diary is kept for yourself. You must have a desire, a need for this business, an understanding of why it is needed and what it will give you. Trying to lead him for show, will not lead to anything good. It’s not even worth starting.
To keep a diary or not is up to you. It all depends on your goals and plans. Either you want to follow the path of professional trading and achieve success, or stand still and stay with what you have.
If You Want Something You’ve Never Had, You’veGot To Do Something You’ve Never Done. If you want something you’ve never had, you’ve got to do something you’ve never done.
(Richard David Bach)