Trade journal

[DrSven]

I heard from different sources that a trade journal is recommended for every trader, especially new ones. I started writing one myself but I am not sure what to write and what not, I feel like I am writing too much and then it is too much useless info to re-read.
As many of you are writing trade journals, I would appreciate your advise on this. What is worth writing down, what is not? And how do you use the info written in your journal to improve your trading?

Thanks.

[SOL]

I heard from different sources that a trade journal is recommended for every trader, especially new ones. I started writing one myself but I am not sure what to write and what not, I feel like I am writing too much and then it is too much useless info to re-read.
As many of you are writing trade journals, I would appreciate your advise on this. What is worth writing down, what is not? And how do you use the info written in your journal to improve your trading?

Thanks.

Focus on extreme moments. Such as Fear/Anxiety and Euphoria. When are you are in these states jot down notes. When you get greedy or feel greedy write what is going on in your mind. Do the same with Uncertainty, fear, anxiety, etc.

Then when you read this journal again, you get insights into your mindset at the time of the event. Seeing this will help you create a plan when you run into these states again. Actually, by re-reading the journal you won't really have to create a plan, it will just start to formulate in your mind. When identify the problem you can work on the solution. The journal helps you identify the problem

[Yodean]

I heard from different sources that a trade journal is recommended for every trader, especially new ones. I started writing one myself but I am not sure what to write and what not, I feel like I am writing too much and then it is too much useless info to re-read.
As many of you are writing trade journals, I would appreciate your advise on this. What is worth writing down, what is not? And how do you use the info written in your journal to improve your trading?

Once again, this is like the "cash allocation" question. There is no one "right" answer. Also, you might find that over time, different ways of using an investing journal might be more beneficial than others for you. If you are improving and evolving as a trader, there is no reason why your journal shouldn't evolve as well. After all, it's your journal, so it doesn't really matter what others think about it.

For me at the current time, I use my "Investing Journal" (IJ) for various sundry things:

-usually on a weekly basis, I calculate my net worth as well as my asset allocation, and I put those values in the IJ.

-I also write down certain tasks (i.e. homework I give myself) that I want to do, but don't have time at the moment to do - e.g. compare weekly and monthly charts of the CTTs with each other as well as with KWEB, FXI and the Nasdaq, etc.

-I also create and experiment with various indicators, so I record those as well - then I go back and continually assess whether they are working or not, as well as tinker with them, etc. For example, I created a BTC indicator that I am continually playing with which has been fairly good, and I have also been experimenting with the L:G ratio (lumber:gold ratio), as a leading indicator of when the VIX _could_ spike, which may give advance warning of a significant drawdown in the general equity markets.

-When I listen to a financial podcast or interview, I try to jot down one of two main points in the IJ, usually because I want to think about those points further. I write down the date and the person in the interview. Very quickly, if you do this for some time, you realize most mainstream financial "gurus" are full of sh*t, lol, and work better as contrarian indicators (good examples that come to mind include Nouriel Roubini, Peter Schiff, and Harry Dent). Once in a while, you find a decent financial advisor who has a higher degree of accuracy in certain asset classes. No one is perfect, and even the really bad ones get some calls right - a broken clock is right twice a day, after all.

-I also print out or summarize in simpler form certain excerpts from T.I. publications and T.I. forums if I find them particularly interesting or insightful. Here are some recent examples:

Nicolas: With commodities in general (including cryptos) I tend to trim regularly (like 10% of the position) when it runs hot on daily / weekly charts, to build cash for buying opportunities. Smaller uranium cos have run faster than the commodity price so I might trim a bit more if and when the USD breaks out, although they already pulled back 30% since May and are far from overbought on weekly charts, so it could be already priced in. I'll see what the signal says. Also, it's something I could hold for 5-10 years so I'm not too stressed about timing each up and down of the bull market. I went in accepting there would be volatility along the way and 50% drawdowns likely to happen.

YY: ... bull markets always end on a euphoria, masses super insane drunk on joy. Also every crash leads to another bull market, no bear consistently in history makes money in the long run. History is a great teacher, however the more I unlearn what’s proper, the more I learn to feel and perform like an artist. An artist on human emotion, behavior. Finance gurus are too stuck on old ways and lose consistently . . .

Sol: Commodity stocks in general are consolidating and will most likely to continue to consolidate as the dollar garners strength. The trend calls for the dollar to rally for roughly the next 24 months. The stocks that hold up the best during this phase in the commodity sector will make for good plays. But in general, it would make sense to lighten up on commodity based stocks. The exception is nuclear power based stocks which is not a direct play, the strong chaps here like here should do well over the next 24 months. No matter what the experts state the current green based energy is not enough to fill the void unless something new is discovered Nuclear is the only real green option.

T.I.: oil will likely have one more spurt upwards, then top, followed by a test of the 40s; silver could test the 18.30 - 20.25 ranges before bottoming; USD rally x 24 months, associated with a decrease in Asian currencies, many commodities . . .

Sol: Hated sectors or stocks usually experience a big selling climax prior to bottoming . . .

***

Incidentally, I also have a "Miscellaneous Journal" (MJ) for non-financial topics, like health/fitness/supplements, etc. A lot of the posts/ideas from subs like Stefk, Hooligan, and others all made it to my MJ. Who knows, maybe in the long run, the MJ will beat out the IJ as to what is truly impactful and important.

[Pip]

Thanks for those excellrnt insights.

Do you use physical journals or are your journals stored digitally online or offline?

[AstuteShift]

Physical journal the best due to mind and body connection being stronger.

Another is seeing your emotional state everyday and seeing where you chickened out or had any other negative emotions. You will be surprised how most of those times you felt those emotions were actually not yours.

Another alternative, is visualization. Visualize you buying during extreme market panic and picture yourself in raw excitement

Capture that positive emotion and also sense that touch of you pulling the trigger with no hesitation, no afterthought and leaving your room to go do other fun hobbies.

Extremely effective imho.

[Pip]

Sounds good. I am going to have to discipline myself into doing this.

Do you also recordd all your trades in your journal and the reasoning behind them?