Hello, Tackle Traders.
Journaling: I know based on my own experience that it is the most dreaded topic when it comes to trading, yet it is an important part of a trader’s journey. Why do we all avoid it? I’ve met many students that are so disciplined in all other areas of trading like position sizing, asset allocation, strategy selection, delta and theta rules yet when it comes to journaling the same level of focus and attention to detail is lacking.
If family feud had a chance to poll a bunch of traders asking what they like most about trading, I can guarantee journaling would not come in as the number #1 answer. It might be shocking if it even came up as an answer. So why to we avoid it or put it off for so long, yet we hear all the time how essential it is to journal? I guess to answer that question we need to answer the other question of why is journaling so important? Most people think that their statement from their brokerage is sufficient enough as a way to keep track of your profit and loss. That is true, however looking at your profit and loss tells you nothing about how the strategies you used to trade played out. It tells you nothing about the type of trader you are, be it a day trader, swing trader, position trader or investor. It also does not layout whether you have a bias towards certain stocks or sectors. Knowing which stocks were the major contributors to those wins or loses is kind of a big deal and P/L number on your screen tells you none of that. If journaling is that important, the reason we do not take it as seriously as determining our entry or position sizing for example is quite frankly, we become lazy and lack the discipline and consistency we have everywhere else.
If you ran a retail business, you’d want to know what products or services generate a higher revenue over others. You’d want to know the cost of said products or services and the returns they yield. Do certain products appeal to one demographic over another and so on and so on. If you do not keep a trading a journal, how can you tell the success rate of your cash flow vs directional trades? Better yet, are you better with naked puts or covered calls? You may peg yourself as a cash flow position trader however based on your wins and loses you might find that you are a better directional swing trader. If you are being coached, your coach can easily identify any flaws in your business just by looking at your trade journal. There are no ifs or buts around this, just do it!
Tonight we continue the discussion on journaling. To get you prepared for this, you will find a few articles on journaling and how to use the spreadsheets at the end of this article.
Go time is at 8:30 pm est for the Women In Trading Webinar so I’ll see you there and invite a girlfriend or two.
Until next time!
Coach Em
Tackle Trading Resources on Journaling
Continue learning about this powerful trading tool: the Trade Journals. Tackle Trading has all the resources you need to MASTER them like a PRO. From the Trade Journals themselves to free articles and tutorial videos on how to make the most out of them, we got you covered!
Trade Journaling for Beginners [Free Articles]
How to use the Theta Research Tool to find the best stocks for Cash Flow
In this video tutorial, Coach Matt goes through the latest edition of the Options Research Spreadsheet explaining how to use it to find the best stocks to cash flow.
How to use the Theta Research Journal to find cashflow candidates
In this video tutorial, Coach Tim teaches how to find the best candidates to trade cash flow options strategies using Tackle Trading’s Theta Research Journal.
Tales of a Technician: Journals, Systems and Discretion
Once upon a time I didn’t use a trade journal. Then I got smart.
Trade Journal Series: How to use the Theta Research to find Covered Call candidates
In this video tutorial, Coach Tim Justice teaches how to find the best candidates to trade the Covered Call options strategy using the Theta Research tool.
Trade Journal Series: How to use the Trade Journal
In this video tutorial, Coach Tim Justice will teach you how to use a powerful trading tool: the Trade Journal.
The Day I Discovered the Wheel: Backtesting
For all of you, who just like me, felt insecure about a certain strategy, and how to apply it, I have one thing to tell you: BACKTESTING!
Tackle Today: Organization is Key Part 1 – Trading Business
You might’ve asked yourself at a certain point: “How should I start to make this trading activity a business?”
Tackle Today: Organization is Key Part 3 – Trading Journal
A Trading Journal is not something superfluous. It is crucial. Continue reading.
Notes from a Newbie: The Trade Journal is your friend
The trade journal is your friend, use it!
Options Theory: Size Matters
Do you have consistent position sizing and are you tracking your trade stats? If not, then here’s your invitation to start.
Friday Feature: Habits of a Wealthy Trader – Part 2: Journal Your Trades
You need to treat journaling as a fundamental step in your data and behavior analysis to help you succeed.
Tackle Today: Organization is Key Part 2 – Business routine
Like any other business out there, your trading business must have a routine. Continue reading.
Women in Trading – Journaling
Journaling: I know based on my own experience that it is the most dreaded topic when it comes to trading, yet it is an important part of a trader’s journey.
Financial freedom is a journey
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