Increase your PnL in one easy step
Fuck that are you mad!?!
People ask me about trading journals, do I keep one, is it connected to my broker, have I coded one in Python. I have some very different advice for journaling. I have suggested this in the past and it almost always receives scrumpled-face horror.
When you start the day, log two things:
You: how you are feeling—happy, sad, nervous, angry, sleepy, horny, hungover, etc.
Your feeling on the market day: bullish, bearish, bounce, shit show, Trump anger, etc. Do this every day and you’ll soon get a good frame of reference.
Now to the business end: Before taking a trade, write down 3 or 4 paragraphs about it. Why you like it, where you want to get in, where you want to get out, and the risks you see.
Here is the kicker: write it with a pen and paper!
Why?
Because: If you can’t be arsed to write about the trade, the probability is that the trade is either shit or you are over-trading. The simple act of writing a few paragraphs with a pen and paper would improve most people’s trading and investing. But it’s effort, and trading is about pressing buttons, not effort, right?
To close the trade, write another paragraph as a debrief. Did you execute to plan? What went right? What went wrong? Score yourself on your planned execution.
Do this for a year and see what it does for you or don’t, if you prefer, I have no way of checking this but I would be shocked not to see PnL improvements.
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Not investment advice. This publication is produced by Chris @ Chasing The Chime for informational and educational purposes only. Nothing contained herein constitutes investment advice, a solicitation, or a recommendation to buy or sell any financial instrument or security.
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