Friday Feature: Habits of a Wealthy Trader — Part 2: Journal Your Trades | Tackle Trading
The best traders keep their trades boring to live a more exciting life. Like many other new traders, I was extremely excitable in the beginning of my active trading experience. Journaling is the last thing I wanted to do on a consistent basis. It was even hard for me to log in my losses and often I skipped because I did not want to face my own mistakes and biases.
Well, I am here to tell you if you want to be profitable consistently and implement self-improvement mechanisms to evolve and mature as a wealthy trader, you need to treat journaling as a fundamental step in your data and behavior analysis to help you succeed.
There are 3 major attributes I look for in my trade journal:
- Did I follow the same technical analysis chart setup and trigger with all my trades?
- With the trades that failed, are there patterns of behaviors issues, technical analysis issues or biases that needs to be corrected?
- Understand my win rate, profit factor and avg. trend in profit/loss with directional trades, vs. cashflow trades.
Tackletrading offers numerous excel tracking for you to get started. There is also free / premium trade journaling software out there for you as well. I migrated to www.tradebench.com this year and logged in over 700 trades to generate average win rate at 44% for delta system and 94% for credit system.
As repetitive and boring as it maybe for you to trigger and log your journals, the long-term implication is that these tasks will build your temperament to be consistent. Its really muscle memory for the brain, so no matter what happens to the market, you will just continue to be a consistent trader.
Pearl Li. The Theta Finder. In the Making.
Pearl Li previously has been a product management professional for more than 10 years working at well-known companies such as Amazon and Nielsen Company. She took the leap in 2016 with Elite Legacy Education to learn about building long term wealth through financial market trading/investing. In 2018, Pearl happily left her job to pursue investing/trading fulltime producing theta style trading that generates monthly cashflow. She is thrilled to be a voice on the Tackle Trading platform to share her transformation as she goes through various phases of her growing experience.
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Originally published at https://tackletrading.com on January 22, 2021.
