Trading From Main Street

[Toni Hansen]

One tool I find enormously helpful in evaluating trades is to keep a trading journal where I log all relevant information regarding a position. I can then use this information for future reference to identify problem areas, strengths, mistakes, etc. The following are key sections in my journal that you might find helpful:

DATE:
SYMBOL:
SECTOR (if known):
BUY/SHORT (circle one)
TYPE OF SETUP:

ANALYZING THE POSITION:
PROS:
CONS:

CURRENT MARKET CONDITIONS:

EXPECTATIONS:
PRICE TARGET:
REASON FOR PRICE TARGET:

ANTICIPATED RISK TO REWARD:
ANTICIPATED RISK LEVEL (rate 1 to 10 with 10 being high risk and 1 low risk):

ENTRY TIME(S):
ENTRY PRICE(S):
REASON FOR ENTRY AT THAT PARTICULAR TIME AND PRICE:

STOP PRICE AND WHY IT'S SET AT THAT PRICE (also note when the stop was adjusted and why):

EXIT TIME(S):
EXIT PRICE(S):
REASON FOR EXIT:

OUTCOME OF TRADE:
EXPECTATIONS MET? YES/NO (circle one)
TRADE ANALYSIS (Include thoughts on the trade such as what could have been improved, what
you felt you did correctly, areas you may need to work on, etc.)