Journal Book

Trading journal will track all your trades in a trading journal. By following this simple, easy to follow trade journal writing tip, you as a trader can easily improve your results. Here is how you do it:

Step 1 - Write down WHY you are making a trade BEFORE executing a trade on your journal.

Before and Prior to opening a trade, write in a journal the grounds why you're making the trade. It doesn't have be long; it doesn't even have to be in compete sentences. Just write in the trading journal a few key reasons why you're making this position.

Be honest with this stock journal. If you are honest, it'll prevent you from making the largest mistakes in your trading. If you see that you are making the trade due to and because of anything other than a sound strategy. DO NOT MAKE THE Indices TRADE TRANSACTION!

If you make a losing position, don't open another transaction immediately so as to make profits to neutralize the losses you have made, this is known as revenge indices trading, do not revenge against the stock trading market. Switch off the PC computer, walk away, & take a very cold shower to cool down. And remember that you'll never lose money which you do not put in. A winning strategy is not only about how much you win, but how much you do not lose.

Step two - Write down how you will exit the trade BEFORE making the position.

Don't get trapped with a great entry trading strategy without an exit strategy. Your strategy should have both great entry and exit strategies. One is not useful without the other.

But you ask, Why bother? I know my trade exit strategy. Why do I need to write it down?

Well, the reason is this: people are at best irrational, impulsive, & emotional creatures. If you have your trade exit strategy written, you've got a point of reference when you exit of a trade. You will refer to your trading journal BEFORE exiting a trade. If you're closing a position for any reason other than your original trade exit strategy, you as a stock indices trader must ask yourself why?

Your journal will save you more funds than you as a stock indices trader can imagine. It will prevent you from making impulsive moves, which is usually why people lose money in indices trading.

Step 3 - Write down why you exited the trade position.

This should be same reason/explanation which you wrote in step 2. If it's not, it's upto you to interpret it. The most regular reason why most traders stray from their strategy is lack of discipline. Your trading journal will be looking back at you and showing you glaring evidence of precisely why you're not a winning trader.

Step 4 - How Can I Interpret the results

You must learn from your own mistakes in indices. This is the best method for any trader to improve their trading profits. Everyone makes mistakes, but great traders are able to learn from them and not repeat.

And the best way to learn from your mistakes is to document them in a stock trading journal. A few years down the road, you as a stock indices trader can still look back and realize that you are still making the same errors and mistakes that you were when you first started trade online.

This info can not be found in any book or seminar. Your trading journal is personal and is uniquely you. Your personality will determine type of trader you'll become, and also will determine type of mistakes you'll make.

Not only does your trading journal highlight your weaknesses, it will reveal the trading transactions that are most profitable. After a little while you will see the type of trading setups that make you most funds, & a pattern will emerge. Do-not let this information on your journal navigate to waste.

You should do all effort to understand why those trade positions went well & try to replicate it as often as possible. Profitable traders know their strengths & weaknesses. They play on their strengths & try to cap their weakness.

Don't get lazy and forget to write on your trading journal. Documenting your thought process is fastest & surest way to get better at indices trading. Do this consistently, & you'll learn more about your habits than you as a stock indices trader can imagine.

Your trading goal is to spot & break your bad habits as soon as possible. If you notice that you always cling on to a losing trades too long, you should do everything that's in your power to prevent this from happening again.

Summary

Your journal is stock indices. It contains a wealth of info that will play a vital role in your success as a stock indices trader.

We urge that you use it for atleast 1 month. If it hasn't helped improve your trading profits in thirty days, then feel free to stop.

But make sure to try it before deciding not to. It might be just the tool needed to push your trade to the next level toward becoming a successful trader.

Learn More Topics & Courses:

Trade Stock Indices

Journal Book

Step 4 - How Can I Interpret the results

Summary