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My first comment is: you must own the wrong books. But I also see that what
constitutes a "good" trading plan isn't qualified in your statement.
There are a couple examples that come to mind: Linda Raschke certainly has
provided examples of how she journals. Someone day-trading isn't going to
be writing a market epic, but taking brief notes and observations that they
can later incorporate. This is Linda's style. "The Stock Trader" is an
(expanded) example of Tony Oz's own trading journal. You'll find it
corresponds very closely to how he recommends keeping a journal. I
developed my own journal style out of Tony's recommendations.
Here are some considerations for starters: record the plan for the trade,
meaning the amount of shares, target entry, target exit (or technique), and
protective stop or failure exit . That's a minimum. Record the type of
order and fill. You might record the ECN. Record anything unusual you
notice about the market (reaction to reports, volume, specialist
manipulation, etc). Record any emotional state you feel is applicable (for
example: I'm not sure about this but am doing it anyway). If the time-frame
permits, I like to take a screen snapshot (I use SnagIt ... a wonderful
tool that makes this very simple). Often I'll record my observations right
on the snapshot so it's easily understood. I will also record how things
worked out after the trade completes. If you create a form or template
(like Linda) journalling takes hardly any time at all.
At the end of the week I review the notes and also jot down observations. I
will also look at all trades in a spreadsheet, maybe sort by different
characteristics, etc, and again jot down notes. I look at the notes and
make trading adjustments as necessary.
My recommendation: find something that works for you and do it; JUST DO IT!
I've learned far more from my own trading journals than any book has taught me.
Kevin Berg
From: "Vince Heiker" <tachyonv@xxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Subject: Trading Journals and Trading Plans?
Message-ID: <INENLHNHOAIGGCDHDNKHOEBKFOAA.tachyonv@xxxxxxxxxxxxx>
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1. Trading Journal.
Many trading experts state that a trader needs to maintain, review, study
his/her own trading journal, implying that without such, a trader will
lose...because s/he will not learn from his/her mistakes.
Date: Fri, 5 Dec 2003 12:26:56 -0600
Curious, is it not, that none of the experts provide an example of even a
single good trading journal? There is not a single good one among my 400+
trading books and 100+ trading videos, nor years of trading magazine issues,
nor at any trading Expo's or seminars or local trading group meetings that
I've attended.
2. Trading plans.
Can't win without a good trading plan...according to many trading experts -
none of whom (see trading journal comments above) can show even one good
example.
What constitutes a good trading plan?
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