Keeping a trading journal

Robert Collier said, “Success is the sum of small efforts, repeated day in and day out.” Lao Tzu said, “The journey of a thousand miles begins with one step.” Charles Atlas said, “Step by step, and the thing is done.”

Figure 6.3 – Trading journal

They all talk about success in steps, but the thing is, success is also a feeling – when you look back and see what you’ve built. And once you’ve identified that feeling, it becomes easier and easier to build toward it.

Now, how can you look back if you’re trading without logging all of your trades, studying what you did well and what you did wrong, and learning from it?

I would argue that a trading journal is a must for any person who calls themselves a trader. You need to have a historical perspective on each trading method you’ve used, to know how good it is, how it behaved in past markets, and...