How to Create a Psychological Journal

Keeping a trading journal with all your trades is good but at the end of day numbers are just gonna be numbers and they don’t really tell the whole story. If you’ve already caught yourself thinking that you’re doing “something” wrong over and over again but you don’t know what it is, maybe it’s time you start a psychological journal too!
You know how the market has tendencies? Well, in the same way that it tends to react to market events and environments in certain ways, individual traders also have repetitive reactions and behavioral tendencies. However, we often overlook them and how they may be affecting our trading performance.
See, through our lifetime we’ve developed coping mechanisms to help us deal with distress. For example, the first time you sipped your hot caramel macchiato a bit too quickly, you’ve learned that your tongue will burn and that it will probably happen again the next time you do it, right? To avoid pain, you’ve learned to sip slowly or waited for it to cool before drinking it. Eventually, coping mechanisms like these turn into habits and come off naturally

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