Keeping a Journal

Posted by downtowntrader | 5/10/2007 10:48:00 PM | 0 comments »

I wrote an article for as a case study for keeping a journal. I highlight why I think keeping a journal is important, and how I used it to confirm my edge. Here is an excerpt:

"Do you have an edge? To consistently win in the markets, a trader needs an edge that tilts the odds in his or her favor over a large sample of transactions. Beyond this, the trader needs to exploit this edge by being disciplined enough to trade the edge when it presents itself, and then manage the trade in order to minimize losses when wrong, and maximize gains when correct. If a trader truly has an edge with long term probabilities on their side, it only becomes a matter of trading the edge in large enough quantities to minimize random chance from the equation. While random chance can impact any given trade, in the long run the odds will gradually even out. Flip a coin ten times, and you could have a weird outcome of seven heads and three tails. Flip a coin ten thousand times, and odds are the results will be near 50/50."

To read the rest of the article follow this link.

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Good Trading,