Make MORE MONEY by Learning How To Journal Your Crypto Trades...

Crypto Banter

Introduction to Journaling for Trading

The speaker emphasizes the importance of journaling in trading, but notes that most people do not understand its true purpose. Journaling is not just about recording every step of a trade, but about understanding oneself and identifying patterns in behavior that can lead to mistakes.

Why Journaling is Important

Journaling helps traders identify issues in their behavior, allowing them to work on them and become profitable traders. It is a self-discovery journey, where traders must battle their own emotions and past traumas to make money in the market.

The Golden Circle of Journaling

The speaker references Simon Sinek's Golden Circle, which states that everyone knows what they do, some know how they do it, but few know why they do it. Journaling helps traders understand the "why" behind their actions and decisions.

How to Journal

The speaker explains how they journal their trades using Trading View, a platform that allows users to record their thoughts, emotions, and strategies. They emphasize the importance of recording emotions, risk management, and trading plans.

Steps to Journaling

  1. Record Emotions: Write down why you took a trade, what you felt, and what your mental state was.
  2. Risk Management: Record your risk management plan, including leverage, stop losses, and position sizing.
  3. Trading Plan: Record your trading strategy, including entry and exit points, and any indicators used.
  4. Update and Reflect: Regularly update your journal and reflect on your trades, identifying what worked and what didn't.

Analyzing Trades

After closing a trade, the speaker recommends replaying the chart, analyzing what went wrong, and writing a summary of the trade. This helps identify patterns in behavior and areas for improvement.

Pattern Recognition

The speaker suggests taking a sample of 20 trades, analyzing the summaries, and using AI models to recognize patterns in behavior. This helps identify areas where improvement is needed and allows traders to adopt new strategies.

Conclusion

Journaling is a crucial part of becoming a profitable trader. It helps traders understand themselves, identify patterns in behavior, and adopt new strategies to improve their trading. By following these steps and regularly journaling, traders can become more self-aware, manage their emotions, and make better trading decisions.