Erfolg mit einem Trading Tagebuch
We specialize in swing trading by applying supply and demand theory to trends in short time frames under a top-down technical analysis approach using objective price patterns. We come to the market prepared each day, having done our homework the night before. Before each trade, we have a reason substantiating the reward-risk benefits of the trade, and a trading plan. We are prepared for whatever happens, as opposed to reacting in panic. We make the market play "our hand," or we don't trade. Then we dynamically update our plan as the stock and the market internals unfold, using trailing stops and scaling techniques to manage our positions.
It is unfortunate the number of times we hear traders stuck in trades that went south on them. Obviously not being disciplined, they likely did not have a trading plan. When asked why they are in that trade, the unfortunate popular answer is, "I don't know." The statement, "Plan the trade and trade the plan," is extremely relevant, although almost trite. But we highly recommend that you do just that! Although many experienced traders can assimilate many of their buy-sell decisions in their head, it is highly recommended that all beginner traders write out the reasons every time they want to buy or sell a stock.
A Trading Diary will help you organize your analysis of the markets and approach the market each day with a plan. Whatever type of trader you are, we recommand that you, at an absolute minimum, record your trades and jot down some notes in the margin of what you learned from the trade. We recommend using a Trade Plan Worksheet; then, after the trade, print a copy of the chart setup for you to review after the market. Complete them daily and review them periodically, say weekly or monthly. It does not matter if your trade is a "winning" one or a "losing" one; the only way to forward your development as a trader is to get something out of the trade, so you may apply the knowledge you have learned to a future trade. It is amazing how many times you will objectively review a trade after the market, in a relaxed environment with no flashing lights or tickers blinking by, thinking, "I traded this piece garbage!!??"
Reviewing both your winning and losing trades will help you develop much quicker and efficiently towards your journey to trading mastery! Remember, just because you won or lost on a particular trade does NOT mean that you traded it in a disciplined manner. Taking your protective stop at a small loss could be much more valuable in terms of discipline and trading longevity than scoring a "home run" on a run-away Internet stock in which you violated every reasonable rule of discipline through feelings of greed.
It may seem that keeping a diary is "not worth the effort" or "takes too much time," but there are valuable lessons to be learned from one's prior mistakes and successes. Another beneficial aspect of keeping a trading diary is that it forces you to face your own self, as you are logging your thought process and your actions. Often traders fall into a sort of complacent denial by "writing off a trade" as a bad one, and take the analysis no further. This mindset will quickly erode a beginner's capital base. It is the responsibility of a blossoming trader to pull at least one lesson out of each trade, or trading day. That is the only way that they will improve.
We specialize in swing trading by applying supply and demand theory to trends in short time frames under a top-down technical analysis approach using objective price patterns. We come to the market prepared each day, having done our homework the night before. Before each trade, we have a reason substantiating the reward-risk benefits of the trade, and a trading plan. We are prepared for whatever happens, as opposed to reacting in panic. We make the market play "our hand," or we don't trade. Then we dynamically update our plan as the stock and the market internals unfold, using trailing stops and scaling techniques to manage our positions.
It is unfortunate the number of times we hear traders stuck in trades that went south on them. Obviously not being disciplined, they likely did not have a trading plan. When asked why they are in that trade, the unfortunate popular answer is, "I don't know." The statement, "Plan the trade and trade the plan," is extremely relevant, although almost trite. But we highly recommend that you do just that! Although many experienced traders can assimilate many of their buy-sell decisions in their head, it is highly recommended that all beginner traders write out the reasons every time they want to buy or sell a stock.
A Trading Diary will help you organize your analysis of the markets and approach the market each day with a plan. Whatever type of trader you are, we recommand that you, at an absolute minimum, record your trades and jot down some notes in the margin of what you learned from the trade. We recommend using a Trade Plan Worksheet; then, after the trade, print a copy of the chart setup for you to review after the market. Complete them daily and review them periodically, say weekly or monthly. It does not matter if your trade is a "winning" one or a "losing" one; the only way to forward your development as a trader is to get something out of the trade, so you may apply the knowledge you have learned to a future trade. It is amazing how many times you will objectively review a trade after the market, in a relaxed environment with no flashing lights or tickers blinking by, thinking, "I traded this piece garbage!!??"
Reviewing both your winning and losing trades will help you develop much quicker and efficiently towards your journey to trading mastery! Remember, just because you won or lost on a particular trade does NOT mean that you traded it in a disciplined manner. Taking your protective stop at a small loss could be much more valuable in terms of discipline and trading longevity than scoring a "home run" on a run-away Internet stock in which you violated every reasonable rule of discipline through feelings of greed.
It may seem that keeping a diary is "not worth the effort" or "takes too much time," but there are valuable lessons to be learned from one's prior mistakes and successes. Another beneficial aspect of keeping a trading diary is that it forces you to face your own self, as you are logging your thought process and your actions. Often traders fall into a sort of complacent denial by "writing off a trade" as a bad one, and take the analysis no further. This mindset will quickly erode a beginner's capital base. It is the responsibility of a blossoming trader to pull at least one lesson out of each trade, or trading day. That is the only way that they will improve.
