Example of How to Write a Stock Index Journal
trading journal will track all your trades in a stock index journal. By following this simple, easy to follow stock indices journal writing tip, you can easily improve your stock indices results. Here is how you do it:
Step 1 - Write down WHY you're making a trade BEFORE opening a trade transaction on your stock indices journal.
Before opening a trade position, write in a stock indices journal the reasons why you are making the trade transaction. It doesn't have be long; it doesn't even have to be in compete sentences. Just write in the stock indices journal a few key reasons why you are making this trade.
Be honest with this stock indices journal. If you are honest, it'll prevent you from making the biggest mistakes in your stock indices. If you see that you're making the trade because of anything other than a sound trading strategy. DO NOT MAKE THE Indices TRADE TRANSACTION!
If you make a losing trade, do not open another stock indices transaction immediately so as to make profits to neutralize the losses you have made, this is known as revenge stock indices, do not revenge against the market. Turn off the Desktop computer, take a walk, take a cold shower. Remember that you will never lose money which you do not put in. A winning stock index strategy is not only about how much you win, but how much you don't lose.
Step two - Write down how you'll exit the trade BEFORE making the stock trade transaction.
Do not get trapped with a great entry stock indices strategy without an exit strategy. Your stock indices strategy should have both great entry & exit strategies. One is useless without the other.
But you ask, Why bother? I know my stock index trade exit strategy. Why do I ought to have it written down?
Well, the reason is this: humans are at best irrational, impulsive, & emotional creatures. If you have your stock indices exit strategy written down, you have a frame of reference when you exit a trade position. You will refer to your stock indices journal BEFORE exiting a trade. If you are closing a position for any reason other than your original stock indices exit strategy, you must ask yourself why?
Your stock indices journal will save you more money than you can imagine. It will prevent you from making impulsive moves, which is usually why people lose money in stock indices.
Step 3 - Write down why you exited the trade position.
This should be same reason that you wrote in step 2. If it is not, it's upto you to interpret it. Most common reason why traders deviate from their stock indices strategy is lack of discipline. Your journal will be looking back at you with glaring evidence of exactly why you are not a winning Stock Indices trader.
Step 4 - How to Interpret the Indices results
You must learn from your mistakes in stock indices. This is the best way for anyone to improve their profits. Everybody makes mistakes, but the great stock 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 indices journal. A few years down the road, you can still look back & realize that you're still making the same errors you were when you first began trading stock indices online.
This information cannot be found in any book or seminar. Your journal is personal and is uniquely you. Your personality will determine the type of trader you will become, & will also determine the type of mistakes you'll make.
Not only does your stock indices journal highlight your weaknesses, it'll reveal the stock indices transactions that are the most profitable. After a little while you'll see the type of trade setups that make you the most money, and a pattern setup will emerge. Don't let this information on your Stock Indices Trading journal go to waste.
You should do every effort to understand why those stock trade transactions went well & try to replicate it as often as possible. Profitable stock traders know their strengths and weaknesses. They play on their strengths and try to minimize their weakness.
Do not get lazy and forget to write in your stock indices journal. Documenting your thought process is the fastest & surest way to get better at stock index trading. Do this consistently, & you'll study more about your habits than you can imagine.
Your stock indices goal is to identify & break the bad habits as soon as possible. If you notice that you always hang on to a losing stock trade transactions too long, you should do everything that is in your power so as to prevent this from happening again.
Summary
Your stock indices journal is stock indices. It contains a wealth of data which will play a vital role in your success as a trader.
We urge you to use it for at-least one month. If it hasn't helped improve your stock indices profits in thirty days, then feel free to stop.
But be sure to try it before deciding not to. It may be just the stock indices tool needed to push your stock indices to the next level to becoming a successful trader.