BC

• Published:January 12th, 2009
• Comments:No Comment
• Category:Trading & Finance

It rarely happens that two traders agree on all of the aspects of trading. Every day, financial gurus give out their contrasting opinions about each and every market that will make you wonder if they are all talking about the same market. Because of the number of opinions and tips about different market, it is important that one maintains a trading diary to analyze one’s trade performance.

Writing down and analyzing your trade performance through your trading diary is one of the most important tools you can have at hand. It would cost you no money and can even save some time and hardship in the future in case you need a reference.

What do you track?
A trading diary documents the reasons why you enter a trade, and where and when the trade happened. It is also important that you take note of any changes in the positions done during transactions. You may also want to record trading results for future reference.

What does your trading diary tell you?
Without a trading diary, you will be confused because your memory cannot handle all the details of your trading transaction. With a trading diary, you can learn valuable lessons from your past transactions. It tells you whether or not you follow your agreed trading plan. A trading plan will let you know if you succeed or failed in a trading transaction. For instance, if you have lost money trading on a specific day, then you can analyze your past trading experiences and see what went wrong to your failed trading experience

A trading diary offers a helpful reminder of your mistakes you tend to repeat. Unless you keep a record of your past trades, you will have no idea on how this practice is constantly being repeated. A trading diary is a living testament that will give you insights into the strengths and weaknesses of your trading approach and execution skills.

In the Planet’s Wealth trading diary, you will be shown exact trades in full detail. Over their many years of successful investing, they have developed a proven methodology for each strategy to identify potential trading opportunities, and evaluate the likelihood of success.