Thursday, September 04, 2008

Trade Journaling w/ Doug Goeckel - MASTERS OF EXCELLENCE


3rd in a series

A foundation for a Successful Trader
Trade Journaling -
I have read many books on the most successful traders in the world and one repetitive action all the traders maintained was to record their trades. It is a written record of you trades - a map of your success or areas which to improve in.
How can you improve if you do not know where your strengths and challenges are? I have discussed this with several of my students who are now trading. A common response is that one of the most helpful things was the log of their daily trades. One of the students I spoke to commented that during the quiet time of the day, having the opportunity to reflect and see the real time responses to trade execution and management.
I see the journal as a real time knowledge base. Each page increases my knowledge of the market, and my understanding of who I am as a trader DURING the live market.

The journal I created includes:

  • Date/ Time/Day
  • Daily Goal – Mental
  • Currency / symbol traded
  • Entry / Exit price
  • Outcome of Trade – positive or negative in ticks
  • Type of set up
  • Reasons for trade – 5-7 reasons
  • Pros and cons of trade
  • Current Market trend – Up, Down, Consolidation
  • Market Traded
  • Time Frame for Trade
  • Entry Time
  • Price Target
  • Stop loss
  • Exit Price
  • Exit Time
  • Risk Reward
  • Target Met
  • Reasons for Trade
  • Reasons for Exit
  • Trade Analysis
  • Trading Lesson
  • Success of Day
  • How I felt prior to Trading?
  • How I prepared for Trading?
  • What did I eat prior to Trading?
  • Did you E.X.C.E.L.

I answer each of these questions for all the trades I take. I usually take between 5-10 trades between 3 futures tickers and 2 FOREX pairs. The journaling take between 5 -10 min per trade. I take a screen shot of my trade and insert into my journal. I keep my trades logged in a 3 ring binder. Recording your trades is a powerful tool that will allow you to have insight into your frame of mind, entry areas, and trade execution and management in the live market.

How much are you missing by not writing your own daily trade journal?
Trade Journaling is one valuable tool that promotes my mental self discipline.

Comments or questions, please feel free to contact me.
Have a prosperous day!
Douglas Goeckel

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