Trading Coaches Advice - Improve Your Trading With A Journal
When you are starting out in trading you must learn a lot of new knowledge and skills. Trading cannot be picked up immediately, it takes time to develop skills as well as the knowledge to know what you ought to do in different situations. Of course there's multiple way to learn what you need to become a proficient trader. Some of these methods are - going to seminars, reading books and learning from other traders.
However, the best way to learn is from experience. Instead of reading or listening about trading, you need to actually make the trades to get the experience. After you have taken the trade, the next most important thing is make every trade a learning experience. I asked a number of trading coaches what they recommend as a method to learn from your trading experiences. The advice from more than one trading coach was to use a trading journal.
What is a trading journal? A trading journal can mean different things to different people. There may be various topics that people think should be recorded in a trading journal. At its most basic, a journal is a record of your trading activities. A trading journal is way to record the facts in an objective way that you can return to, to understand what was going on at a particular time.
You can think of a trading journal as recording two types of information. Trading coaches recommend that one of the uses is to just record the details of the trades you took. In this journal, you'd record trades taken, position size, if there were any increases in position size and exits. An optional extra is to include a chart of the security at the time of the trade for reference. This type of record is all about the numbers and the facts, that can be used for analysis. You can use the data to produce your performance statistics.
The second type of journal is a psych journal. This type of journal is also important, because as humans we're not robots that just execute our trading plans without emotion. Emotions and feelings tend to influence what we're thinking and what we decide to do.. A trading journal is a good way to become aware of what we were thinking when we took a trade. You could record the logic behind why you took a trade, how you're feeling and you may soon discover patterns in your behavior that are only obvious by reviewing your journal.
Article Source: FxTradingStock.com
About the Author
Learn more about a trading coach and how they could help you. Visit www.tradingcoachdirectory.com to choose the best trading coach for your needs.
by: John Peters
Total views: 58
Word Count: 426
Date: Wed, 9 Jun 2010
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