The Essential Trading Tool
I am sure you have been there, we all have. You finish your trading day, review your trades and see that you are repeating the same mistakes again and again. This can get quite frustrating.
The shortest distance between two points is a straight line. Having to repeat lessons causes the line to be a zig zag. The "shortcut" to trading success is not repeating mistakes.
The best tool for learning how to trade is a diary.
This is not the "dear diary" type, it is a daily progress worksheet that you fill out after each trading day. You fill out each trade, stock, entry, exit, grade, comments and so on. Then you calculate your statistics for the day and draw your conclusions.
Download the worksheet that I prepared for you from:
http://www.shoguntrading.com/dailylog.pdf
Print out quite a few copies, dedicate a binder for your trading business and make sure you fill one out every day. Pay special attention to the quality of your conclusions, make sure you include lessons learned and emotions encountered during your trading day.
The power of this process will reveal itself when you review your week on the weekend. Sit down with a nice drink and go over your conclusions for the week. Did you learn any new lessons? Did you learn any lessons again? Are you repeating mistakes?
I hope that this will help you progress in a straight line and not a zig zag.
Dedicated to maximizing your profits,
Shay Horowitz
Shogun-Trader
