Trading journal

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The trading journal (also called trading or trader's diary ) is used as an aid for self-control when trading securities (in technical jargon: trading ) (see also Trader ).

A trading journal usually consists of two parts. The first part of the records contains the essential facts about a securities transaction ( trade ) such as the name and ID of the securities traded, purchase and sale price, date, number of units, fees, possibly also price charts, press releases and business reports. The other part is freely determined by each trader - but there are suggestions from experienced traders. Accordingly, your own objectives, assessments or prognoses as well as rules and notes about compliance are suggested as data to be recorded. It is also often recommended that you record your feelings before, during, and after making a trade, such as:

  • Expectant attention, euphoria (before opening a trade)
  • Negation, anger, bargaining, acceptance (in the case of a losing position)
  • Confirmation, prestige, transfer to ego (if position is profitable)

In addition, it is often recommended to include a plan in the trading journal that describes the steps that are necessary to execute the respective strategy.

The purpose of a trading journal is to improve self-awareness, self-control and discipline with regard to trading:

Self-knowledge

The knowledge that you have made a mistake is the prerequisite for avoiding the mistake in the future.

Self control

Discipline requires being clear about what you are doing.

discipline

Established rules and plans are only useful if they are implemented in a disciplined manner.

literature

  • Jim Paul, Brendan Moynihan: What distinguishes winners from losers . 1st edition. FinanzBook Verlag, Munich 1996, ISBN 978-3-932114-00-7 , p. 205 (American English: What I learned losing a million dollars .).
  • Marc Lorünser, Andreas Maier: Online Day Trading for Beginners - The fast path to the future of securities trading . 2nd Edition. FinanzBook Verlag, Munich 2001, ISBN 978-3-932114-67-0 , p. 45-48, 242-246 .