TRADING DIARY : ESSENTIALS OF A SUCCESSFUL TRADER

As a day trader you should maintain a record diary and you should enter complete details regarding all your trades in that diary. You should write your comments on every trade along with results of that trade in your diary.

According to your trading plan when you find a trade then it is not just sufficient to sit back and completely relax. Your trading strategy requires you to watch the results of your trades in relation to your trading plan.

A trade should not end once you exit out of that trade. You must analyse it and learn from it by keeping good trading records. A good trading record should also contain your comments on every trade.

After  finishing every trade you should write your comments on confirmation or confusion in identifying entry signal, putting stops, fixing targets, stock price movements, after entering that trade, market breadth at that time, market outlook etc.

After writing trading diary for few weeks you can review and analyse the same in various different methods to find out best alternatives to finally improve your intraday trading performance. You should analyse winning trades and losing trades separately and find out the common factors in both winning trades and losing trades.

If you find something in common in all your winning trades, you should follow that common factor in all your trades and when you enter into a trade next time, you should look for this common factor.

If you find something in common in all your losing trades, you should consider that common factor as a warning signal which results in loss. So you should remember this common factor and you should look this common factor before entering into a trade every time.

If you strictly follow the habit of writing a trading diary with all the details of a trade including how you made the trading decision, how you fix your stop loss, how you were feeling before entering a trade, how you fix your target and the results of each and every trade with comments with clear numbers. This trading diary will help you to modify and adjust your trading plan, your approach and your attitude to improve your day trading.

 

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