The main reason for starting this journal is to help me earn profit from trading, hold myself accountable, and do something different. Within the journal, I aim to track my development, including the trading plan, trades, and strengths and weaknesses.
I liked sharp2bes ideas and layout in his initial journal post and will generally follow it to provide some info about my trading style and objectives. Thank you S2B.
Background: Please see my posts in the introduce yourself here and recommended reading/books threads.
Some Beliefs:
Trading profitably is possible for me.
I do not need to be infallible or perfect to be consistently profitable.
I carefully choose high probability situations to make consistent money.
Some trades will fail but it is vital that losses are kept to a minimum.
Im happy to take what the market offers.
Finding a method that suits my personality and risk tolerance is essential.
Practice is essential.
Instruments and Timeframes:
CL and 6E 6 range chart
I also look at FESX and YM to see whats happening.
Risk Management:
Account size: $11,000
Max Risk per trade: $100
Max losses per day: 3%
Max losses per week: 6%
Max losses per month: 12% (or 2 losing weeks)
Goals:
Create a trading plan and regularly update it
Identify good times to trade each day
Consistently track trades and evaluate performance
Select one instrument that suits my account size and personality
Select one TF that suits my account size and personality
Identify three patterns to trade and learn trade them well
Keep it simple
Learn to read order flow and incorporate it into my trading
Tools:
Charting: Ninjatrader
Order management: Ninjatrader
Journaling: This thread
Some Areas of Weakness Id Like to Address:
Jumping from method to method and instrument to instrument
No trading plan
No trading records (and no evaluation)
Impatience
Overtrading
Cutting Profits Short
Not knowing my R:R and w/l ratios
Not knowing if Im properly capitalized
Not knowing my personal timeframe
Process, rules and others:
How will I ensure I only risk my max amount per trade?
- Review account summary before the market open
- Setup automated order placement in Ninja
- Will not move my stop
How will I ensure I stop trading for the day when I reach my max daily loss?
- Stop trading after 3 losses
How will I ensure I stop trading for the week when I reach my max weekly loss?
- During my morning review of my account, if the number of available days to risk = 0 then no trades
Will not enter new trades between 11:30am and 1:15pm or around news.
How will I keep track of my progress?
At the end of every day that I sim-trade I will post my account summary and trade results for the day. I will also (if time permits) write some observations on my learning for the day.