Page 22 - Buildingastrategy

BUILDING A STRATEGY PART 9

USING A JOURNAL WHEN TRADING

CONTINUED

Spreadsheet v Journal
When speaking about the benefits of journalling I often get told this
" I already use a spread sheet to track all my trades"
I use a spread sheet too however all my spread sheet can do is give me my
profit and loss it cant give me the feedback I need to improve as a trader. When
looking at my spreadsheet at the end of the month all it becomes is just

numbers that tell me how much money I made or how much money I lost. My
spreadsheet does not tell me why I made a loss on that specific trade, it does
not provide me with the information of why I entered and exited at certain points,
it does not provide me with the information of any key market behaviour during
the trade! Vital information needed to become truly consistent. So yes a spread

sheet is important but unless you are journalling alongside then it will not give
you the feedback you need to build consistently profitable and evolving
strategies.

What could you include in your Journal
1. Reasons for entering trades
2. Decisions during trades (Maybe you buy more shares)

2. Exit strategies
3. Market Conditions
4. Your trading Rules
5. Return on Investment Target
6. Performance of trade (buzz dividends returns)
7. Current Mindset and mood

In your journal you can write about anything and everything that effects your
personal trading, review this information on a regular basis and you will improve.