This is a conversation about the benefits of stock trading and the importance of maintaining a stock trading diary and keeping a journal of your thoughts and feelings when you are trading.
The Benefits of Stock Trading
Most trading experts and experts agree that the primary benefit of trading is to be able to buy low and sell high. This process of selling high is known as speculation, and the secondary benefit of trading is that it creates massive profits that can make you over $50,000 in one day.
Day trading is the practice of buying and selling stocks within a single trading day. Many day traders do this 10 to 20 times a week. Day trading has become extremely popular in the last several years, particularly in the United States.
The Importance of Keeping a Stock Trading Diary
Most traders believe that they would become experts in stock trading if only they could just read a book or read a few pages from a manual on stock trading. They are simply not built for day trading in the traditional sense. Day trading is different from every other kind of trading because of the speed at which it is done. Traders have to be able to keep up with dozens of stocks at once and quickly make decisions about which ones to buy and which ones to sell. Day traders have to be able to make decisions within seconds. The traditional approach just does not work in day trading. The primary benefit of stock trading is based on the fact that you can buy and sell dozens of stocks within a single trading day.
The Importance of Your Stock Trading Diary
A stock trading diary will keep you out of trouble. It will help you identify potential pitfalls. It will help you manage your money. You will be surprised at how good it helps you.
You will be able to see what you have bought and sold as well as who you have bought and sold to. If you had a bad trade, you will be able to track down who you had bought and sold to, and why you were wrong. You will be able to see if you have gained or lost money. This will provide you insight into your technique. You will be able to avoid what I call "negative loops". Your stock trading diary will help you see opportunities that you may have overlooked. It will give you an important nugget of knowledge that may change the way you trade. The importance of a trading diary is that it is the primary source of information that helps you define what you do for a living.
You will be able to see what areas you are weak in and how you can improve your trading. The stock trading diary is also crucial in the long run. It is important to track your profits and losses. You will be able to see your progress as you gain expertise in stock trading.
Remember, there is nothing else you can do. You have to be honest with yourself. You will be able to do this. If you do not believe you can, go to your broker and ask for help. The stock trading diary is fundamental to your success in day trading. Remember, it is not all about the money. It is also about having good judgment.
I believe your stock trading diary will become the best tool you have in helping you understand your strengths and your weaknesses and therefore help you become a better trader. It will be a great help to you and your future self.