How to write a PROPER trading journal...

Summary

In this educational video, the presenter shares a personal trading journal template to track daily trading activities. They emphasize the importance of journaling for self-reflection and improvement, suggesting that successful traders maintain a journal. The script details how to fill out the journal effectively, focusing on introspection and constructive self-criticism. The presenter also advocates for a physical journal over a digital one, citing benefits like better retention and psychological insight, ultimately positioning the journal as a key to trading success.

Takeaways

• 📝 Keeping a trading journal is essential for long-term success in trading, as emphasized by profitable and successful traders.
• 📋 The speaker uses a specific template for daily journal entries, which includes date, trades taken, and profit/loss in dollar amount.
• 🤔 The 'thoughts' section of the journal is crucial for introspection and should be filled with honest reflections on emotions and trading decisions.
• 🚫 Avoid negative self-talk in the journal; instead, offer constructive criticism and speak positively to foster a growth mindset.
• 🔑 The power of words in the journal can influence subconscious thinking and affect future trading behaviors.
• 📉 The speaker shares a personal example of a bad trading day, demonstrating how to use the journal for constructive self-analysis.
• 📝 Writing by hand in a physical journal is more beneficial than digital entries, as it aids in retention and reflection.
• 📚 A physical journal serves as a form of separation from screens, encouraging a more mindful and immersive reflection process.
• ✍️ Handwriting thoughts and feelings in a journal can lead to better learning and psychological improvement compared to typing.
• 📊 While digital spreadsheets are useful for quantifying data, a physical journal is superior for psychological insights and self-improvement.
• 🔄 The speaker recommends using both a physical journal for psychological insights and a digital spreadsheet for data tracking.

Q & A

What is the main purpose of keeping a trading journal according to the video?

The main purpose of keeping a trading journal is to track and learn from each trading session, ultimately improving one's trading skills and becoming a more successful and profitable trader.

What are the key elements included in the daily template for the trading journal?

The key elements in the daily template include the date, trades taken, outcome of the day (win or loss), profit and loss in dollar amount, and a section for thoughts and reflections.

Why does the speaker emphasize the importance of the 'thoughts' section in the trading journal?

The speaker emphasizes the 'thoughts' section because it allows traders to deeply reflect on their emotions, behaviors, and decisions during the trading session, which is crucial for learning and improvement.

What should traders avoid when writing in their trading journal?

Traders should avoid talking negatively about themselves. Instead, they should offer constructive criticism and speak positively to maintain a healthy mindset and encourage growth.

What example does the speaker provide from their own trading journal?

The speaker provides an example from their worst trading day, where they traded emotionally, turned a potential $450 profit into a significant loss due to revenge trading, and reflected on the lessons learned and plans for improvement.

Why does the speaker prefer a physical trading journal over a digital one?

The speaker prefers a physical trading journal because writing by hand helps retain information better, allows for separation from the computer, and fosters a deeper reflection on trading activities.

How does the speaker suggest using a digital journal in conjunction with a physical one?

The speaker suggests using a digital journal for quantifying data like wins, losses, and overall returns, while using the physical journal for writing down thoughts, emotions, and psychological improvements.

What is the benefit of writing things down by hand according to the speaker?

Writing things down by hand helps retain information better and facilitates deeper learning and reflection compared to typing on a computer.

What does the speaker mean by treating the trading journal like a 'love letter' to oneself?

Treating the trading journal like a 'love letter' means offering oneself kind, constructive criticism and positive reinforcement, rather than harsh negativity, to encourage growth and improvement.

What psychological benefit does the speaker attribute to keeping a physical trading journal?

The speaker believes that a physical trading journal helps improve one's psychological approach to trading, which is considered the second most important factor for trading success, by fostering introspection and personal growth.

Outlines

00:00

📒 The Importance of a Trading Journal

The speaker emphasizes the significance of maintaining a trading journal for daily reflection and improvement. They share their personal template, which includes recording the date, trades, outcomes, and profit and loss. The template also has a dedicated section for 'thoughts,' encouraging introspection on emotions felt during trading and areas for improvement. The speaker advises against negative self-talk and suggests treating the journal as a constructive tool for self-improvement. An example from the speaker's journal illustrates how to use the template effectively, focusing on honest self-reflection and positive reinforcement.

05:01

📘 The Superiority of Physical Journals for Trading

In this paragraph, the speaker argues for the benefits of a physical trading journal over a digital one, particularly for psychological aspects of trading. They suggest that writing by hand helps in retaining information and reflecting more deeply. The act of writing physically is seen as a way to separate from the screen and engage in meaningful self-reflection. The speaker recommends using a physical journal for recording thoughts, emotions, and self-improvement strategies, while a digital spreadsheet can be used for quantifying data. The paragraph concludes with a call to action for viewers to adopt this practice for enhanced trading success.

Keywords

💡Trading Journal

A trading journal is a record-keeping tool used by traders to document their trades, decisions, and reflections. In the video, the presenter emphasizes the importance of maintaining a trading journal for learning and improving trading strategies. It is highlighted as a key habit of successful traders and is used as a tool for introspection and self-improvement.

💡Template

A template in this context refers to a pre-designed format or structure that traders can use to organize their journal entries systematically. The video script describes an exact template the presenter uses, which includes sections for recording date, trades taken, outcomes, and thoughts, serving as a guide for effective journaling.

💡Profitable Traders

Profitable traders are individuals who consistently make gains in the trading market over time. The script mentions that all successful, long-term traders keep a journal, indicating that maintaining a trading journal is a common practice among those who are profitable in trading.

💡Journaling

Journaling, in the context of trading, involves the act of writing down one's trading activities and reflections. The video script stresses the importance of journaling as a means to document trades, analyze performance, and foster personal growth in trading abilities.

💡Data Quantification

Data quantification refers to the process of measuring and expressing data in numerical terms. In the video, the presenter talks about quantifying data at the top of the journal, such as the date, trades taken, and profit and loss in dollar amounts, to have a clear numerical record of trading performance.

💡Introspection

Introspection is the process of self-examination or self-analysis. The video encourages traders to use the journal's 'thoughts' section for deep reflection on their trading sessions, emotions, and potential areas for improvement, making introspection a core part of the journaling process.

💡Constructive Criticism

Constructive criticism is feedback that is intended to help someone improve by pointing out potential areas for development in a positive and helpful manner. The video script advises traders to use their journal as a means to give themselves constructive criticism, promoting a positive and growth-oriented mindset.

💡Emotions in Trading

Emotions in trading refer to the psychological states and feelings that a trader experiences during the trading process. The video script discusses the importance of recognizing and addressing emotions such as fear and greed in the journal, as they can significantly impact trading decisions and outcomes.

💡Physical Journal

A physical journal is a tangible, handwritten record as opposed to a digital one. The video argues that a physical trading journal is superior for learning and improvement due to the act of writing by hand, which can enhance retention and reflection, and serves as a form of separation from the trading screen.

💡Digital Journal

A digital journal refers to a record-keeping method that uses electronic devices or software, such as spreadsheets. While the video acknowledges the effectiveness of digital journals in quantifying data, it suggests that a physical journal is more beneficial for psychological aspects of trading and personal growth.

💡Revenge Trading

Revenge trading is a term used to describe the act of making trades in an attempt to recoup losses from previous trades, often driven by emotions like anger or frustration. The video script uses this term to illustrate a negative example of emotional trading that should be avoided.

Highlights

The presenter shares their personal trading journal template used for daily entries after each trading session.

Demonstrates how to effectively fill out the journal to learn and improve trading strategies.

Advocates for the superiority of a physical trading journal over a digital one for learning and improvement.

Emphasizes the importance of keeping a journal for long-term success in trading, as done by profitable traders.

Details the structure of the journal, including date, trades taken, and profit and loss.

Suggests leaving a large space for 'thoughts' to reflect on the trading session.

Advises introspection and honest reflection on emotions and possible improvements after each trading session.

Recommends avoiding negative self-talk and instead offering constructive criticism in the journal.

The presenter reads an example from their own journal, illustrating the process of self-reflection.

Highlights the importance of not beating oneself up but rather speaking positively in the journal.

Explains the psychological benefits of writing by hand as opposed to typing for retaining information.

Argues that a physical journal is more beneficial for psychological improvement in trading.

Suggests using a physical journal for emotional reflection and a digital spreadsheet for data tracking.

The presenter shares their personal worst day's journal entry to show the application of the template.

Recommends limiting the number of trades and setting stop losses to improve trading discipline.

Encourages viewing the journal as a 'love letter' to oneself, promoting a positive and constructive mindset.

The video concludes with a reminder of the importance of daily journaling for self-improvement in trading.

Transcripts

in this video I'm going to show you the

exact template I use to keep a trading

journal the exact thing I use to enter

in every single day after each trading

session secondly I'm going to show you

how to actually fill out that journal

effectively so that you learn from it

and can use it to improve your trading

and thirdly I'm going to explain why if

you have a digital Journal currently why

you should absolutely opt to get a

physical trading journal and why it is

superior for your learning and

Improvement now a lot of new Traders

will neglect keeping a journal out of

pure laziness or because they think that

it's not beneficial but let me tell you

every Trader you know that is profitable

successful long term all the best

Traders they keep a journal okay so if

you want to be on par with them at some

point you're gonna have to start with

keeping a journal along with all of your

trades Journal all of your trades all of

your days okay if you don't have a

journal right now you're already setting

yourself up to fail long term okay

you're not going to make it you're not

going to make it buddy getting right

into it the template I use to journal so

every day I head up the journal okay the

usual things your date trades taken your

outcome for the day was it a win or a

loss and what was the profit and loss

today in dollar amount okay let's just

uh quantify the data have it at the top

below that thoughts okay you're gonna

head up the word thoughts and leave a

big space for that so I don't know if

you can see that in the camera there but

there's an entry of mine you can see the

top this top there with the data and

then my thoughts takes out a solid eight

to ten lines okay just copy this

template and put it in a physical

journal and use that every single day

now for this journal to actually be

effective this thing's not going to work

if you're just mindlessly recording this

every day and you're not putting much

thought into it you're just saying you

know today I lost 500 and I'm sad about

that or I traded I traded like trash

today that's not gonna work all you have

to do is actually get introspective

about it okay so every single trading

session you have end of the day

immediately when you finish write down

an entry into this journal and in the

thoughts section you're going to want to

use that to deeply reflect on what

happened during the trading session okay

I'm going to read you an example from

mine in just a second for my worst day

that I had last week now in the journal

under the thoughts section you need to

honestly reflect what emotions did you

feel during the trading day what were

you feeling were you fearful were you

greedy and what could be improved upon

now an important thing and I learned

this from ICT an important thing here is

not to talk negatively about yourself in

this trading journal it sounds like some

woo-woo self-improvement rubbish and I'm

not a huge fan of that kind of stuff

either but do not talk negatively about

yourself in this trading journal okay

treat this like a love letter to your

future self a love letter to your

current self even if you think about

dealing with someone you love and you're

seeing that they're hurting themselves

or they're going through something you

don't you're not harsh on them you're

not trying to talk negative to them

you're going to lovingly try and help

them out and try and give them

constructive criticism perhaps so use

your trading journal in the same way

don't beat yourself up give yourself

constructive criticism on where to

improve speak positively only okay

you'll be surprised The Power of Words

what they can do on your subconscious

which will affect your future in trading

as well now I'm going to read you an

excerpt from my worst day how's that for

trading YouTuber I bet most trading

YouTubers will read you their best day

to show off but I'm going to show you my

words stay my ugly side all right so

Monday 28th of February I wrote I traded

emotionally today what could have been a

plus 450 day ended up almost at my daily

loss limit why because I was mad at

myself for not taking profit when I

could have and tried to make up the loss

by taking revenge on the market

Revenge trading never works out I should

have just walked away with a 200 loss

and left it at that this again is a

lesson to take profit and not be greedy

for the rest of the week I'm going to

limit myself to five handled trades only

and my stop loss must move to plus five

handles and stays there once my first

target has been hit I'll be coming back

stronger tomorrow so that's how you use

these things effectively okay just give

yourself constructive criticism don't be

negative but be honest with yourself

okay be very honest with how the day

went what went wrong why you lost or why

you won and what could be better okay

every day you'll learn something new

about yourself this is a mirror into

your soul all right so use it as such

now why do I think that a physical

Journal is more beneficial than a

digital Journal while a digital Journal

is effective in the sense of quantifying

data using a spreadsheet and figuring

out you know what your wins and losses

are for the day for the month or

whatever finding out what your return is

in your in your trading account but if

you actually keep something physical

something like this you fill it out

every single day writing things down by

hand and coming away from the screen and

using it as a form of separation from

your computer as a way to really sit

down and reflect adds a lot more benefit

and even just the act of writing things

out by hand it stays in your mind a lot

more than typing something outward it's

the same as if you try to take notes on

something if you take notes on a

computer you're less likely to retain

that information or to learn from that

information than you would be if you

were to write it out by hand okay so I

highly suggest you use a physical

trading notebook alongside a digital

spreadsheet of some sort okay but when

it comes to writing down your thoughts

emotions and feelings and where you can

improve psychologically which is in my

opinion the second most important factor

to success in trading when it comes to

improving psychologically using the

physical Journal is highly Superior okay

use it this is your magic key right here

so that's how I keep my training

journals I hope you find this video

useful keep an eye out for more trading

content make sure you like And subscribe

I'll be putting more videos out more

frequently keep the likes and

subscriptions coming and thank you for

watching