How could keeping an investing journal help you?
Simple. It makes you think about what you are doing when you are trading more than you would normally. If you make yourself write something down every time you make a trade, you are less likely to make wild trades and lose money.
By giving yourself a little more analysis through your journal, you can easily improve your objectivity and keep yourself worry-free.
What to write in it:
In my mind, investing journals should be very personal items. Because of this, I would say that there isn’t an exact template you should follow when writing in your journal.
There are, however, several things that everyone should jot down:
- If you are considering a trade, write down what you are considering and why.
- If you make that trade, write down the details of the trade (price, amount, date, commissions, etc.) and what your goals are (when will you sell, estimated profit, etc.).
- When you sell, write down the details as listed above as well as a review of how you did and any relevant commentary/analysis of your trade.
After that, it’s up to you as to what you put in your journal. Try and keep it with you so you can always have access if inspiration strikes and since you are likely the only one to ever see it, go crazy and enjoy yourself!
What I use:
I use Moleskine notebooks for my investing journals.
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