Cart is empty 
Day trading can be a complicated and yet rewarding way to make money. And if you know what you’re doing, or at least are dedicated to learning more about this business then the amount of money you stand to make just goes up and up.
Many people are just starting to figure out how valuable day trading can be, and are trying to figure what they can do to become successful in it like so many people before them. And this article is going to help with that goal.
By the end of this article, you should know how to make a trading journal and how creating one will help you on your way to stay consistent with day trading. As well as a few other tips, so let’s get started.
Why Make A Trading Journal?
Keeping a trading journal is going to allow you to later have a precise look back at all of your previous trades, this is going to keep you accountable and accountability is important. Why? Because by remaining accountable, you’re going to have to take a look at your successes and also your failures.
And humans learn through trial and error, so by keeping this journal and reflecting on the mistakes that you’ve made, but also the good decisions, you’re going to learn what you need to do next time so that your trades work out even better.
Additionally, keeping one of these journals will help establish day trading as an important daily routine for you which will help you to stay consistent. And consistency is key if you want to make more money as a day trader.
How To Make A Trading Journal?
A good trading journal should have three different parts to every entry.
The first part should be an entry that you write down before the markets open and you begin trading. You need to jot down your thoughts about the market on that day, as well as any ideas you might have that align with your trading plan.
The second part, you need to work on during the trade. Write down any relevant charts or metrics that pertain to the trades on that day. Keep track of things like the time frame, the markets you’re trading in, and the amount of trades you’re making, etc. Write down anything important.
And after the trading is done, write down your last entry for that day. It should contain information and metrics about everything you did during that day. Similar to the second entry, but finalized.
Another Important Step To Become A Successful Day Trader
Is to have a detailed day trading strategy, and stick to it. Without sticking to your trading strategy, given that it’s a good one of course, you’re doomed to fail in day trading. So although how to make a day trading strategy is a topic for a different day, we are going to discuss how to stick to one after you’ve made it.
Here are some of our top tips for staying disciplined.
- Keep your goals in mind!
One of the best ways to stay motivated and disciplined in anything is to keep in mind why you’re doing that thing. This is why it’s important to set clear goals when you start your day trading journey.
When you’re writing down your day trading strategy, write down your goals somewhere near that strategy so that they go hand in hand in your mind. Maybe even put it in your trading journal for a daily reminder.
There are no rules for what your goals should be, so whatever will motivate you personally to stick to your strategy should be written down. Financial freedom, quitting your day job, paying for your kid’s college, etc.
- Only gain information that relates to your strategy.
This one takes a bit more explaining because the concept might sound counterintuitive at first. But basically this means that you should choose a few topics that pertain directly to the kind of day trading you want to do. And don’t learn about anything else if they’re not part of that topic.
This will allow you to master everything relating to your personal strategy and therefore your strategy itself. It will also keep you from being overwhelmed with other information and tips that might make you doubt yourself and your plan.
- Don’t get discouraged.
Day trading has its ups and downs, just like anything else. And sometimes the day trading strategy that you’ve created will even be set up to have low points before the high ones.
But as we mentioned earlier, by keeping track of everything along the way of your journey you can easily look back and spot mistakes that you’ve made and proceed to fix them. You have to stay accountable and make adjustments.
Just keep in mind that low points are part of the process, and you shouldn’t create a whole new plan just because things aren’t going exactly how you want them to at the moment.
Because the last thing you want to do is have to start over, learn everything from the ground up, make all those much-needed micro-adjustments, and perfect your strategy all over again.
Stick with what is tried and true.
Leave A Comment