You may have not have kept a journal as a child, but if you wish to become a successful proprietary trader you must take the time to document the decisions you make in online trading. Documenting trades is the first step to become a professional trader.
Why keep an Online Journal
1. To note thoughts and emotions
Online traders use journals to document how they feel and what they think before they execute any trade. This way, they can see how logic and their emotions reflected upon their trading decisions. By documenting thoughts and emotions, traders can reflect back upon past decisions and determine whether they stuck to their stock market trading strategy or if his trade was controlled by their emotions.
Smart traders will keep a log of their trades and will keep a notebook beside them at every minute of the trading day. It can be tedious at first, but this will eventually become habit. Professional traders know that the stock market generates the lessons that they must learn for themselves. Without documenting and acknowledging the mistakes and successes they have made, improvement will be near impossible.
2. To track their trades
Professional traders also document trades to keep track of their positions. Without documenting every holding, traders can lose track of their positions that could lead to overtrading. Amateur traders often make the mistake of holding over 10 stocks at one time. This is not advisable because of the difficultly in tracking all trades at once and especially when a new trader is getting used to online trading.
3. To maintain focus and concentration
By documenting trades, traders can see mistakes and successes. Therefore a trader can learn from the mistakes and successes they have experienced. The stock market trading journal will become the essential trader handbook.