Trade Stock Indices

Example of How to Write a Indices Journal - Index Journal Meaning

Track all your Index trades in a trading journal. By following this simple, easy to follow tip, you as a Stock Index trader can easily improve your results. Here is how you do it:

Step 1 - Write down WHY you are making a Indices trade BEFORE executing a Indices trade.

Before opening a Indices position, write in a Indices trading journal the reasons why you're making the trade. It does not have be long; it does not even have to be in compete sentences. Just write a few key explanations why you're making this Index trade.

Be honest with this Index journal. If you're honest, it will prevent you from making the biggest mistakes in your trading. If you see that you are making the Indices trade due to anything other than a sound trading strategy. DON'T MAKE THE TRADE TRANSACTION!

If you make a losing Stock Index trade, don't open another trade transaction immediately so that to make profits to neutralize the losses you have made, this is known as revenge Indices trading, do not revenge against the Indices market. Shut off the computer, walk away, and take a cold shower. Remember that you will never lose money which you do not put in. A winning Index strategy isn't only about how much you win, but how much you don't lose.

Step 2 - Write down how you will exit the Indices trade BEFORE making the Indices trade.

Don't get trapped with a great entry Stock strategy without an exit strategy. Your strategy should have both great entry and exit strategies. One is not useful without the other.

But you ask, Why bother? I know my Stock Index exit strategy. Why do I have to write it?

Well, explanation is this: people are irrational, impulsive, & emotional creatures. If you've your exit strategy written, you have a frame of reference when you exit a Indices position. You'll refer to your trading journal BEFORE exiting a Indices trade. If you're closing a position for any reason other than your original and initial Index exit strategy, you as a stock indices trader must ask yourself why?

Your journal will save you more money than you as a stock indices trader can imagine. It will stop you from making impulsive moves, which is generally why people lose money in Stock Index.

Step 3 - Write down why you exited the Indices position.

This should be the same reason/explanation which you wrote down in step 2. If it is not, it's upto you to analyze and interpret it. Most frequent reason/explanation why most traders stray from their trade strategy is lack of discipline. Your Indices journal will be looking back at you and showing you glaring evidence of precisely why you're not a winning Index trader.

Step 4 - How to Interpret/Analyze and Analyze the Indices trading results

You must learn from your own mistakes in Indices. This is the best way for anybody to improve their profits. Everyone can make mistakes in trading, but the great stock index traders are able to learn from these mistakes & not repeat them.

And the best way to learn from your mistakes is to document them in a Indices journal. A few years down the road, you as a stock indices trader can still look back & realize that you're still making the same errors and mistakes that you were when you first began and started Stock Index online.

This information can't be found in any book or seminar. Your Index journal is personal and is uniquely you. Your personality character will determine the type of Index trader you'll become, and will also determine the type of mistakes you'll make.

Not only does your trading journal highlight your weaknesses, it will reveal the Indices trading transaction which are the most profitable. After a little while you will see the type of Index trade setups that make you the most money, & a Indices trading pattern will emerge. Do-not let this information on your trading journal go to waste.

You should do every effort to understand why those Indices trade positions went well and try to replicate it as often as possible. Profitable Indices traders know their strengths & weaknesses. They play on their strengths & try to minimize their weakness.

Don't get lazy and forget to writedown in your trading journal. Documenting your thought process is the fastest & surest way to get better at Index trading. Do this consistently, & you will learn more about your habits than you as a stock indices trader can imagine.

Your goal is to identify and break your bad habits soonest as possible. If you notice that you as a trader always hang onto a losing Index trade too long, you should do everything in your power to counter this from occurring and happening again.

Summary

Your Stock Index journal is gold. It contains a wealth of info that will play a vital role in your success as a Indices trader.

We strongly urge that you use it for at least one month. If it hasn't helped to improve your profits in 30 days, then feel free to stop.

But make sure to try it before making a decision not to. It might be just the tool needed to push your trading to the next level toward becoming a successful trader.

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