Trades with Free Stock Tracking Software

Benefits of a Trades Diary

How a Trades Diary Can Help You Become a Better Trader

How do you learn to become a successful stock trader? The answer is to practice trading. But, how do you practice trading? Do you try to eyeball various stock charts and see where the chart trend went up or down in the past?

This technique has limited benefit since hindsight is 20/20. It is easy to bet on the winner of a football game when the game is over and you already know who won. But it is much harder to choose the winner before the game and bet your hard-earned money on the outcome.

Therefore, in order to learn to trade better, it is important to simulate real trading conditions as closely as possible. An excellent way to learn to trade is to enter trades in real time as if you were entering an actual trade and did not know where the stock price would travel the following day. This is sometimes called paper trading.

The reality of stock trading is that we cannot predict the future. However, by practicing and learning, we can attempt to figure out what often works and what does not in order to gain a statistical edge and to win more money than we lose over time.

A trades diary is a record of your stock trades (practice trades or actual). It has pictures of charts, stock prices, other relevant information, as well as your own notes related to what you were thinking on the day you decided to enter a particular trade. After entering a trade, you can refer back to your trades diary to learn from your winning and losing trades. It is a very important tool in your arsenal of becoming a better trader.

A civilized person is in touch with his past. Understanding what has gone before helps you deal with the present and face the future. A trader who keeps a diary can learn from the past instead of mindlessly repeating mistakes. A trading diary provides a private mirror, a valuable feedback loop. It is probably the single best learning tool available to traders.
- Dr. Alexander Elder from his book, "Come Into My Trading Room".

Trades Diary offers a free trades diary where you can keep an electronic record of your trades forever.