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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
Good Record Keeping and Performance Analysis
Are Essential to Success
Record keeping and performance analysis form an essential part of any successful
trader’s plan. Without the accountability factor, the temptation to go rogue is far too
great. With proper records, you will know where you stand at any given point in your
career and you will be able to analyze your results.
In A Trader’s Money Management System, by Bennett McDowell and published by
John Wiley & Sons, there is a complete record keeping system that can help you to stay
on track. The system takes you from the micro level all the way to the macro level and
includes the following forms:
1. Stock Trade Posting Card.
2. Option Trade Posting Card.
3. Future Trade Posting Card.
4. Back of Posting Card.
5. Daily Worksheet.
6. Daily Trade Ledger.
7. Weekly Trade Ledger.
8. Monthly Trade Ledger.
9. Annual Trade Ledger.
10. Back of Trade Ledger.
The idea is to print out the ledgers and posting cards. Organize the ledgers in a three-
ring binder and put the posting cards in a file box.
You can see how you track your individual trades on a trade posting card at the micro
level and then take it on up to the annual trade ledger, which is the macro level and the
big-picture view of your annual performance.
Some of the unique data you as a trader need to track is as follows:
• Win ratio and Payoff ratio
• Average Win and Average Loss
• Largest Win and Largest Loss
• Profit and Loss by week, month and year
• Psychology and strategy for each trade
By completing these forms daily, weekly, monthly and annually you will be capturing the
data you need from both a profit/loss standpoint ad also from a trading psychology
standpoint. This unique personal data, over time, holds the keys to improving your
performance.
These forms are included in this chapter for your convenience.
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