Why you need to journal

Summary

In this video, the focus is on helping traders become consistently profitable (CPT) through structured practices like journaling, refining strengths, and addressing weaknesses. The speaker emphasizes the importance of keeping a trading journal to track progress, analyze mistakes, and identify successful strategies. By focusing on one area of improvement at a time, traders can build sustainable growth and avoid burnout. Tools like the SMB Performance Center are highlighted, as well as the necessity of reviewing trades and learning from both successes and failures. The ultimate goal is to develop high-performing traders who can eventually scale their success.

Takeaways

• 😀 Consistency is the key to becoming a Consistently Profitable Trader (CPT). It's not about making huge profits quickly but steadily improving over time.
• 😀 SMB Premium offers a monthly focus on one specific area of trading, allowing traders to work on improving one skill at a time rather than overwhelming themselves with multiple goals.
• 😀 Many traders face frustration with inconsistency, where they experience success followed by setbacks. The key is to use that frustration as a learning tool.
• 😀 Keeping a trading journal is a crucial practice for continuous improvement. Many traders fail to do this, limiting their growth.
• 😀 A trading journal should not just track profits but include notes on mistakes, strengths, and market observations to identify patterns and optimize strategies.
• 😀 Performance tracking tools like SMB's Performance Center help traders log and review their trades, which allows them to see what setups work best for them.
• 😀 Statistical tracking of trades helps traders avoid overvaluing certain setups or misjudging their performance based on isolated big wins or losses.
• 😀 Psychological awareness is crucial. Keeping a separate journal for emotional triggers and frustrations can help you stay grounded and make better decisions.
• 😀 Understanding market structure (e.g., trend days, range-bound days) is essential for successful intraday trading. Align your trades with the broader market context.
• 😀 Consistent journaling and reviewing of trades help traders stay on track with their long-term goals, refine their strategies, and avoid emotional decision-making.

Q & A

What does the term CPT stand for in trading?

CPT stands for 'Consistently Profitable Trader'. It refers to a trader who consistently achieves profitability, which is a key position to be in for sustainable growth in trading.

Why is being a Consistently Profitable Trader (CPT) more important than making seven figures in trading?

Being a CPT is important because it allows for scalability and sustainability in trading. While making seven figures is a goal for some, being consistently profitable over time ensures long-term success and allows traders to grow steadily.

What is the key takeaway from the speaker's advice on focusing on one trading goal at a time?

The speaker emphasizes that traders should focus on improving one thing at a time, rather than trying to fix multiple weaknesses simultaneously. This focused approach leads to more progress in the long run.

What is a common frustration among traders, according to the survey mentioned?

A common frustration among traders is a lack of consistency. Traders often experience short bursts of success, followed by significant setbacks, which leads to frustration and sometimes quitting or starting over.

Why does the speaker stress the importance of keeping a trading journal?

A trading journal helps traders track their progress, identify strengths and weaknesses, and stay focused on improving. It serves as a tool for self-reflection, noting mistakes, and reinforcing learning from both successful and unsuccessful trades.

What does the speaker suggest about reviewing trades after the day is over?

The speaker advises that after trading, traders should review their trades and reflect on the reasons behind each decision. This practice helps identify areas for improvement and reinforces good trading habits, which is crucial for long-term success.

How does the speaker recommend tracking performance in trading?

The speaker suggests using a trading journal alongside tools like the SMB Performance Center to track specific trade types, such as opening drive plays or multi-timeframe technical trades. By categorizing and reviewing these trades, traders can gain insights into what works and what doesn't.

What role does psychology play in a trader's success, according to the speaker?

Psychology is a significant factor in a trader's success. Traders should maintain a separate psychology journal to track what triggers frustration or 'tilt'. Understanding these emotional triggers helps traders manage their mindset and avoid making impulsive decisions under pressure.

Why is it important for traders to understand market structure, according to the speaker?

Understanding market structure is crucial because it helps traders align their strategies with the broader market trends. For example, identifying whether it's a trend day, range-bound day, or reversal day can inform better decision-making during intraday trading.

What does the speaker suggest about focusing on strengths rather than weaknesses in trading?

The speaker recommends focusing more on trading setups that a trader excels at and maximizing profit from those trades. Rather than obsessing over weaknesses or trades that didn’t work, traders should refine their strengths to generate consistent profits.