Ten Ideas for Creating a Good Trading Journal

Apr 10th, 2013 | By | Category: Mike Bellafiore's (Bella's) Blogs
Share on StockTwits


Mike,Order The PlayBook

You’ve mentioned having a journal, and a detailed journal on a number of occasions. It always makes me feel guilty because I haven’t been keeping one and I don’t know what I’m missing. In the Wall Street Warrior video, I think I saw your recruits carrying paper notebooks. So I’ve been wondering:

  •  what do you write in the journal?
  •  when do you look in the journal?
  •  do you move journal info to a spread sheet for analysis?
I guess I can figure out the basics, like entry info, why you got in, why you got out, but I was wondering if there’s a post somewhere that dives deep into how to make and use a good journal?
Sincerely,
Thanks!

@mikebellafiore

What makes for a good trading journal?

1) Make it your own. This is your business. You know best what’s most important to your trading business.
2) Identify your strengths. Build from your strengths. What setups made the most sense to you on this trading session?
3) Crunch your trading statistics. Embrace this age of Moneyball for all sports. For your sport of trading, quantify your trading efficiency.
4) Outline trade ideas for tomorrow. Take the info from today and use it to make money tomorrow.
5) Be hard on yourself with your best setups that worked. Where could you have added more size responsibly?
6) Keep a separate psychology trading journal. This is your trading strategies and executions journal.
7) Review whether you were in the right stocks. You are only as good as the stocks you trade.
8) Understand the market structure for the day. Most traders just place trades no matter whether it is a Trend Day or Range Day without recognition or the day’s market structure. Certain patterns work best during certain market structures. It may not have been you. It could have just been a day where those trades weren’t gonna work.
9) Keep playing with your journal. Add, subtract, change, improve.
10) Be consistent. A trading journal works if you do the work everyday.
Here is a daily trade review from an SMB Trader.
I hope that helps.
You can be better tomorrow than you are today.

Mike Bellafiore

The PlayBook

One Good Trade

no relevant positions

Tags: , , , , , , , , , , , , , ,
smb newsletter
Options Risk Disclaimer    Forex Risk Disclaimer

1. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through smbtraining.com) and in person. SMB TRAINING also offers web-based, interactive training courses on demand.

2. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

3. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

4. SMB Training and SMB Capital Management, LLC are separate but affiliated companies.

5. No relevant positions

6. Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

Log in | 60 queries. 1.620 seconds.