The Forum is an important feature of The Disciplined Trader Training & Support Program. It is the place where our students can share training experiences with others and ask questions to our Expert Advisers. By limiting discussions to “all things trading discipline”, we can help our students stay focused on getting results.

In this section of the newsletter we’ll pull one student’s pertinent question from the forum and give you our expert’s response, so YOU can benefit from what our students are learning.

We are proud to announce that this week’s Expert is Al Abaroa, an expert on “Journaling: Tips and Techniques.”

Al Abaroa brings over fifteen years trading experience. He is the author of Options Pro Essentials (Futures Press 2008), The Commodity Wire – A Market Weekly and Senior Strategist at OptionsPro, Corp.

He has appeared on TV with analysis of the futures markets and equity market directional forecasts. He has been quoted in Barron’s, the Wall Street Journal, Reuters and Trader-Source magazine. He served as sector editor for  Mega Trends, the all markets monthly publication distributed by Dow Jones News.

He lives in Plantation, Fl with his wife and their three children.

Although his credentials speak to the options arena, Al is well versed in all modalities of trading and is passionate about the importance of Journaling…

Now learn from our student, RJ as he ask Al his pressing question…

The Forum Question:

“Is there such a thing as a trading journal template?  I would like to know what is necessary to include, nothing more. Is this possible, or does every traders problems need a custom template to address these issues?  Norm, last time you gave a brief synopsis of your journaling. Could you go further?  I remember you started the new day with a quick review of yesterdays trading, ie, focus items.  I have done that, and it does help. So much of trading is trial and error. I am just trying to hang on until the ol’ light bulb goes on.”
Thanks,
RJ

Al’s Response:
RJ-

There is no such thing as “ONE SPECIFIC” trading journal template. I think you are correct in that a custom template is the correct answer. That template will change over time as well. What is important to day will be different next year. It’s important that you do journal something and more important that you review it.

I am a creature of habit. So for me the discipline of logging comes natural. I am however, extremely busy throughout the day. So for efficiency reasons, I use a coding system for the data I want to analysis later. I rate myself in the following categories when executing:

1. Emotional State of Mind?
2. Did I have laser focus?
3. Trading Plan Parameter Met?
4. Risk Management Discipline

I am looking for consistency in my discipline. If it is not there, the data can serve as an emotional stop and take me out of the state of mind. The numbers don’t lie. This is more of a quick reference tool to keep me in check. I prep this out on an excel file so I can just fill in the blanks.

The above is from the post you captioned. I make myself assign a ranking for “Emotional State.” I make the ranking simple. I use letters to grade A-F.  Also, use numbers if that’s easier.

At time of execution I write my immediate thoughts. I’m not as much of a short-term trader anymore so I “update” my hand written notes whenever I am thinking about a trade adjustment. In those notes, I may toss in a letter grade from my emotional state.

When the trade is complete, I go back and assess, from start to finish. I first look at the obvious (P/L). I then look at my emotional ranking. If I lost, I scrutinize the hand written notes more carefully. You know yourself best here. If you find yourself rambling on and on, it may take longer to do this. I try and stay with the relevant. BTW, “relevant” is subject to personal interpretation.  That could mean a lot or a little. If “a lot” prevents you from writing at all, shorten your entries ASAP. Without that critical data, you can’t go back and review. Imagine a top athlete not being able to watch game film highlights because he couldn’t fast-forward through the timeouts.

Good Luck,

AA

Did Al’s response help you with your journaling?  We’d love to hear what you think of this post, comment below!