Example of How to Write a Stock Trading Journal

Stock trading journal will track all your trades in a stock trading journal. By following this simple, easy to follow stock trading journal writing tip, you can easily improve your stock trading results. Here is how you do it:

Step 1 - Write down WHY you are making a stock trade BEFORE opening a trade transaction on your stocks journal.

Before opening a stock trade position, write in a stock 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 trading journal a few key reasons why you are making this stock trade.

Be honest with this stocks trading journal. If you are honest, it will prevent you from making the biggest mistakes in your stock trading. If you see that you're making the stock trade because of anything other than a sound stock trading strategy. DO NOT MAKE THE Stock TRADE TRANSACTION!

If you make a losing stock trade, do not open another stock trading transaction immediately so as to make profits to neutralize the losses you have made, this is known as revenge stock trading, do not revenge against the stocks market. Switch off the PC Desktop computer, walk away, and take a very cold shower to cool down. And remember that you'll never lose money that you don't put in. A winning stock strategy isn't only about how much you win, but how much you do not lose.

Step 2 - Write down how you will exit the stock trade BEFORE making the stock trade transaction.

Do not get trapped with a great entry stock strategy without an exit strategy. Your stock trading strategy should have both great entry & exit strategies. One is useless without the other.

But you ask, Why bother? I know my stock trading exit strategy. Why do I have to write it down?

Well, the reason is this: humans are at best irrational, impulsive, and emotional creatures. If you have your stock trading exit strategy written down, you have a frame of reference when you exit a stock trade position. You will refer to your stock trading journal BEFORE exiting a stock trade. If you're closing a position for any reason other than your original stock trading exit strategy, you must ask yourself why?

Your stock trading 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 stocks trading.

Step 3 - Write down why you exited the stock trade position.

This should be the same reason that you wrote down in step 2. If it is not, it is upto you to analyze it. The most common reason why traders deviate from their trading strategy is lack of discipline. Your stock trading journal will be looking back at you with glaring evidence of exactly why you are not a winning Stock trader.

Step 4 - How Do I Interpret the stock trading results

You must learn from your mistakes in stock trading. This is best way for any trader to improve their trading profits. Everybody makes mistakes, but great stock traders are able to learn from them & not repeat.

And best way to learn from your mistakes is to document them in a stocks trading journal. A few years down the road, you can still look back and realize that you are still making the same errors you were when you first began stock trading online.

This information cannot be found in any book or seminar. Your stock trading journal is personal and is uniquely you. Your personality will determine type of trader you'll become, and will also determine type of mistakes you'll make.

Not only does your stock trading journal highlight your weaknesses, it will reveal the stock trading transactions that are most profitable. After a little while you will see the type of stock trade setups that make you the most money, & a stock trading pattern will emerge. Do not let this data on your journal go to waste.

You should do every effort to understand why those stock trade transactions went well and try to replicate it as often as possible. Profitable stock traders know their strengths and weaknesses. They play on their strengths & try to minimize their weakness.

Do not get lazy and forget to write in your stock trading journal. Documenting your thought process is the fastest and surest way to get better at stock trading. Do this consistently, and you will learn more about your habits than you can imagine.

Your stock trading goal is to spot & break the bad habits as soon as possible. If you notice that you always hang on to a losing stocks trade transactions for too long, you should do everything in your power to prevent this from happening again.

Summary

Your stock trading journal is stock. It contains a wealth of information that will play a vital role in your success as a stock trader.

We urge you to use it for atleast one month. If it has not helped improve your stock 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 trading tool needed to push your stock trading to the next level to becoming a successful trader.