Keeping a journal while trading is very important as it will enable you to have a track record and analyse past performance.
In this episode, Mike and Rory discuss how they keep a journal and also demonstrate the importance of having one especially if you are approaching an employer with reference to your trading performance. Many people will not consider your trading experience without a track record or journal.
In the podcast, Mike and Rory talk about some of the most commonly used ratios and explain some of the features they would include in a trading journal. Rory mentions how having a P&L isn’t the only way to keep score. There are lots of other metrics needed in order to show where capital is correctly and incorrectly being allocated.
Mike also shares his thoughts around monitoring the assets you trade. Simply having a strong or weak Profit & Loss will not help if you can’t determine where you make your money. Mike and Rory both agree if you have lots of losing trades you need to know what asset the losses come from and not to waste time “working on that asset” instead, focus on your strength and trade what you know.
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