Trading Journal

Keep a journal of your trades listing your trading plan criteria and how the buy/sell fits the plan. Create a daily trading journal to record feelings and actions. Print out charts and record entry signals and stop losses. Once the trade is closed print a chart and mark exit points. Apart from recording details of a particular trade I feel it is important to record your emotions prior to entering a particular trade. Your trading plan should give you consistency and this should be shown in your trading Journal. Quite often traders will ask me what they are doing wrong. Generally I have found that they might have done say 10 trades all with different entry and exit methods. In this case it is bordering on impossible to help them but if they were consistent and did the same thing five times I would then be able to offer constructive criticism and probably detect any methodology that is not working.


Record keeping

The record keeping I am talking about is not the information that you would enter into the trading journal; it is the records required for the Tax man. Talk to your accountant regarding this matter. Most brokers or broking platforms can provide accurate end of year statements to satisfy the needs of auditors, accountants and the taxman.