Confidence and journal writing
Interesting article from Dr. Steenbarger. I have started my trading journal 4years ago and I have to say that without that I am not sure I would be even able to pull a trigger. I write to that all the time. Generally after entering position explaining why I have entered. During the difficult time when I am not sure what I should do. For that reason I have prepared another list of questions for myself which helps me to realize if I am getting out strictly on emotions or if there is any fundamental or technical reason. But the most important thing of getting a confidence is repetition! "Repetition is the key to internalization." So if you don't have a journal go for it. Create one. Start with very simple one. Just a date, pair you are trading and thoughts before and after. After that 4yours of keeping a journal it had evolved into more complex way of keeping a notes. It has categories, sections. I use some of my own psychological tools I have created for myself like CPHEPDC which I will explain later as well as emotional section, general section (how i fell in general that particular day), end day recommendations (what I have learned that day and what i am taking with me) and so on. Anyway more about that later. For now here is the a passage from the article:
Other times, however, our judgments are based on faulty perception. Suppose I have two losing trades in a row, wipe out a week's worth of profit, and now am frustrated. I call myself an idiot and I start worrying that maybe I'll lose the month's gains. My negative self-talk is an expression of my frustration, but it is also a self-appraisal that leaves me feeling less capable of facing the market going forward. I become hesitant; I won't trade until I see the market set up perfectly. But it doesn't set up perfectly, and I miss the trade. That adds to my frustration and my negative self-talk. In such ways, slumps–both emotional and trading–are born.
source: traderfeed.blogspot.com
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