So how do you do it?
And do you do it?
When i enter the trade i take a screen shot of all 3 time frames that i am watching.
When i exit the trade i also take a screen shot of all 3 time frames.
I also write down in Word every single detail about the trade.
I have also read about more complicated methods of running a diary(Dr.Elder)but it seems to me that this could be good enough.
What do you gals and guys think??
Regards!
VingTsunKuen
Firstly, note that I don't do forex and i use this method for short term share trades 1-3 days usually. I hope this helps as a comparison of how just 1 person does it & how it works for them.
I take relevant screen shots at entry, exit (and eod if trade lasts longer than 1 day). This is complemented by a proforma (entry,exit,eod) containing all data relevant to my trading system. This includes my thoughts on the trade - why enter, the plan and anticipated exit.
I used to store the charts electronically & the rest hard copy but i now do it all hard copy and store in arch-lever binder because (1) you can TA doodle on the charts (2) when reviewing trades i find it much easier to leaf through and examine & simultaneously compare a series of paper pages rather than calling up a number of PC windows. I also find it useful when reviewing, to have these screen shots at the various stages of the trade - you can then consider the stages in isolation - not so easy when using a complete timescale chart that shows what actually happened the next day (covering up the right hand side doesn't work very well for me!)
I've found this procedure to be really useful for my system but it could be a bit wearisome if you do more than a few trades per day. It has helped me with self discipline (you have to be organised and purposeful to keep this up) and forced me to think about each trade - i used to have a tendency to jump in just a bit too quickly.
I now find it very interesting to go back over old trades and see what, if anything, I would do differently now and why. It's even more interesting to look back at old "potential" trades (I do similar recording for trades which i research and then reject) and see whether or not my conclusions at the time were correct. One of my psychological traits is that i like to be right (yes - I know that it's more important to be profitable than right) so i work with this trait rather than against it by tailoring my system to take it into account.
This is probably all too much if you're a scalper or very short term / numerous trader but it's helped me in my particular style. I suppose if you do lots of trades you could analyse 1 in 10 (get decimated eh?). Perhaps those who trade very frequently and successfully don't need to get as involved as this. I just like to take it steady - did all my running around with hair on fire years ago!
PS. I also keep a personal journal to record my thoughts, ideas, lessons learned and future areas for exploration and development in terms of my trading system and personal psychology. Again, along with the accounts it serves to give a good picture and analysis for ongoing development.
