| Every trader has made the same fundamental | | | | know thy enemy. Thy enemy, my friend, is you! |
| error at some time in their career. Actually, most | | | | By keeping detailed records of your trades, and |
| businessmen and entrepreneurs make this same | | | | periodically reviewing those records you will begin |
| mistake. | | | | to see patterns that lead to either success or |
| Let me tell you a story: While at graduate school, | | | | failure. By detailed, I mean time of day, weather, |
| I was crazy about windsurfing. Whenever it was | | | | your moods, your thoughts or how you were |
| windy, I was sailing. Nothing else mattered. | | | | feeling physically. Write down as much as possible |
| Classes, assignments, term papers, labs and | | | | as clearly as possible. |
| everything else took a back seat. If it weren't for | | | | By reviewing my own trading journal, I learned |
| my marks, I would have been kicked out for | | | | not to trade on windy days no matter what! I |
| sure. | | | | learned not to trade before programming |
| Ask yourself "How can anyone get decent marks | | | | deadlines, that my most profitable trades where |
| with that kind of focus?" And focusing on the | | | | made mid-week and my poorest trades were |
| task at hand, trading or otherwise, is what I want | | | | nearly always made on Fridays. |
| to talk about. | | | | I learned that the best research I did was on |
| When it wasn't windy, I was concentrating 110% | | | | sunny days. That family time and trading were |
| on my studies. And when it was windy, I only | | | | poor bed fellows and that day-trading on an |
| cared about sailing. I knew exactly when and | | | | empty stomach was always a poor decision. |
| where the conditions where sailing conditions were | | | | Most importantly, I learned to maximize my |
| perfect because I kept a detailed journal of my | | | | chances of success by knowing something about |
| sailing experiences. In other words, my journal told | | | | my trading personality. When I realized this, I |
| me exactly what I should be focusing on: studying | | | | conducted a survey of my trading clients and |
| or sailing. | | | | business associates and guess what? Those that |
| The biggest mistake people make is not keeping | | | | kept a journal did far better than those that did |
| an accurate account of what they are passionate | | | | not. |
| about. When it comes to trading, a journal can | | | | My advice to you is simple: You can dramatically |
| mean the difference between success and failure. | | | | increase your trading profits by keeping a detailed |
| Not having one is one of the biggest mistakes | | | | journal. Your journal can become your coach and |
| you can make. | | | | mentor: An unbiased, unforgiving but honest look |
| It's simple: when you start keeping a journal of | | | | into your own trading style and personality. |
| your trading activities, those records will | | | | Lastly, your journal can help you decide if you |
| eventually tell you why and how you succeed or | | | | should be doing something. Perhaps you should be |
| fail. | | | | playing baseball with your kids or having dinner out |
| No matter what you trade or how you trade, | | | | with your wife. After all, isn't a better more |
| you are your own worst enemy. Conquer your | | | | rewarding lifestyle why we all do it? |
| own inner-self and anything you can imagine can | | | | Make it a habit to keep a trading journal. Your |
| be achieved. As every floor trader can tell you, | | | | profits will soar and your stress levels plummet! |