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Vince
A trading journal is a tool, like many others.
I went to college and some how made it through most of my exams
and courses, largely because I or one of my friends took good notes.
Fortunately for me, I took the suggestion of my early trading mentor and
have kept a trading journal (notes) ever since. It's invaluable to me and
an important key to my personal trading success.
I guess I am not as smart as some who say it is a waste of time,
but I would never say that you cannot succeed without it.
Each to his own.
It works for me, and I have been at it for 13+ years.
Sorry, but no, I will not send you a copy of my journal, it's private.
But I will tell you how I keep it and what it contains.
First of as soon as available, I check the previous sessions equity runs
against, my journal. If inconsistencys are found, they must be reconciled
before the trading day begins. If not I may have orphan positions open.
In some minor cases, this will carry over into the current session.
But usually not.
At one time, I recorded trades on trading "tickets" just like the "big
guys"
on the floor. That rather quickly became cumbersome and was abandoned in
favor of adding them to the journal. I don't have to hand the tickets off
to
my assistant for recording and I don't have to keep additional tickets in
my
pockets as do floor traders. My journal is on my desk. Everything is in one
place
Next, a series of market info sources are consulted each trading day.
From those I write down what gov reports etc and what time they are due.
Next, support and resistance numbers are calculated and recorded. This is
somewhat simple math and somewhat subjective. It is therefore only
partially automated.
Next, a chart review of data in multiple time frames to get a sense of what
the market is saying about the trend and velocity.
Next comes a review of previous journal editions which appear to be similar
trading days.
Journal entries are cataloged by date but with notations about certain
events and what happened. Examples are numerous. Think about it, come up
with your own on this one.
Next, comes a review of market breadth. This is mostly software driven. But
it is done again in multiple time frames.
As the trading day begins, opening ranges give an indication of direction.
As the session progresses, entries are made of each trade, some software
driven
and some subjective, but all are definitely software aided.
Buy/Sell entrys, stops, and stop updates, exits.
I trade multiple contracts and multiple products often simultaneously.
It can be very challenging, even with my notes, to keep up with it all.
Again some of this is software driven, but still , it's a handfull.
As you can see, my journal is both a historical record and a
work-in-progress.
I like to leave each trading session with confidence that I know what I
did.
It may not always be what I woulda, coulda, shoulda or mighta done but what
I
did do is there. Some days that's easy and some days it would be difficult
to know for sure, were it not for my writings and recordings.
My trade recaps are also there.
At the end of each trading day, I also write a brief recap/summary of the
day. I include any trading ideas or research ideas for followup.
This helps me carify my thinking.
This should give some ideas about starting your own journal. It is not
comprehensive , but is intended to provide a starting point.
The journal should not be cast in stone but altered to suite your own
style.
This is perhaps the primary reason that why few journals are published.
It's personal. What you say, how you say it, and how much you say.
Some of my college class mates took volumes of notes, seemingly to the
point
of calling it dictation. Mine were more of an outline. We both suceeded.
Wel
most of us anyway.
If I thought, (which I don't) that all of my trading could be completely
automated, I might, but probably would not, want to do it anyway.
First, I imagine that if trading could be fully automated, the brightest
guys with virtually unlimited financial and programming resources, would
have done it and would have all the money. They haven't and they don't.
Just look at their publically available track record. It's mediocre at
best.
Remember, a journal is simply one of many tools.
It works for me.
Why not give it a try ?
There is much more to my journal, but I'm sure you're probably bored if not
asleep by now.
In any event, I hope this helps.
Thanks ! :)
Peyton Morgan
LP@xxxxxxxx
----- Original Message -----
> From: "Vince Heiker" <tachyonv@xxxxxxxxxxxxx>
> To: <omega-list@xxxxxxxxxx>
> Sent: Friday, December 05, 2003 1:26 PM
> Subject: Trading Journals and Trading Plans?
>
>
> > 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.
> >
> > 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.
> >
> > Occasionally I correspond with very well known trading book authors and
> > seminar providers. I challenge some, politely, to provide me with just
one
> > decent design or example. None have.
> >
> > The best trading journal I've seen, is at the website of another trader,
> who
> > has been trading only about 2 years, if memory serves. Isn't that also
> odd,
> > that a non-expert can put good thought into this, not only design but
also
> > use and bravely post his trading journal for all to see - yet not one
> expert
> > can do so?
> >
> > 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?
> >
> > Anyone here ever seen one, other than brief outlines in books about what
> one
> > should contain?
> >
> > Is it a portion of a full-blown business plan? Is a full business plan
an
> > important critical success factor? If so, what is a full business plan
for
> a
> > trader?
> >
> > There are plenty of books at Amazon and elsewhere about business plans,
> and
> > many good examples...but is one really necessary? Is creating and
> > maintaining a good business plan, worth the considerable effort that it
> > takes for a trader? If so, why?
> >
> > Back to just the trading plan portion itself. What is it? Just a list of
> > trading rules, of do's and don't's?
> >
> > Inquiring trading minds want to know...so why can no trading experts
> provide
> > good designs and good examples?
> >
> > If anyone herein knows of a book, seminar, tape, web site, etc., where
> there
> > is a good trading plan, design, please share it with us. If you have a
> good
> > one of your own, can you at least share the design of it with us, if not
> > much of the plan itself?
> >
> >
> > Vince Heiker
> > Flower Mound, Texas
> >
>
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