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.