BarroMetrics Views: Journaling and Trading Success III

First off apologies. I scheduled to do this blog last night but an unplanned meeting arose that derailed my plans. Lately, the 24 hours in a day don’t seem to be enough hours to get all I want done within the time I want to have them done by.

So we are at the last section of the series. In this blog, I’ll outline the structure of my journals. Truth be told, I record three journals:

  • An equity journal in a spreadsheet that contains the history of my trades and based on those trades,  the sheet spits out the stats I need.
  • A psyche trading journal
  • A private trading journal

All journals are crossed reference. Let’s start with the private journal.

This a narration of my day - what I did, how I felt, any insights or bright ideas that I had, any plans or actions to implement the insights etc. Most important of all I record in detail any event that raised strong feelings and a description of how I felt and what I did (if anything) as a result. If I think the event is important enough, I cross reference it with my pysche trading journal.

Let’s know turn to the trading journals.

The format for the Equity Journal is self-evident. It contains the usual date of entry, instrument, long/short position size etc. In addition it records the initial stop, and the Rule under which I took the trade. On request, the Journal displays, upon request, myriad bits of info:

  1. Avg $ win, avg$ loss
  2. Win Rate and Loss rate
  3. Number of consecutive wins and consecutive losses
  4. The dollar value of (3).
  5. Reward:Risk ratio.

My chief use of the Equity Journal is to maintain my awareness of whether I am in the Neutral, Flow or Ebb Cycle since those factors define my position size.

The Trading Pysche Journal records around the trade, the following:

  • The observed results and the (my) behaviour that generated the results
  • Any divergence between the two.
  • A description of the context in which I generated the behaviour
  • An examination of the assumptions that founded the behaviour
  • Possible remedial action, if required.
  • Effects of remedial action evaluated after 30 occurrences.

I link the Personal to the Psyche because I want to be aware of any possible connection between the two. In my journals, I make it a point to record not only negative events but also positive ones. Seldom does a day go by that I don’t find something that leads me to feel grateful I am alive.

As I said in the earlier blog - my journals provide the data to permit to identify patterns that may need to be changed if I am to achieve my outcomes. It also provides a record of remedial action and their results.

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