THE NEW TRADING OF A LIVING- GOOD RECORD-KEEPING

THE NEW TRADING OF A LIVING GOOD RECORD-KEEPING “ There is no free lunch. As with so many other things, either you’re going to pay up front or you’re going to pay on the back end for being disorganized, and unfortunately, when you pay on the way out it’s always more expensive...” writes Andrew J. Mellon in Unstuff Your Life. The market is perversely inconsistent in dishing out rewards and punishments. There is always a chance that a poorly planned trade may bring profits, while a well- planned and carefully executed trade may end in a loss. This random reinforcement subverts our discipline and encourages sloppy trading. Good record-keeping is the best tool for developing and maintaining discipline. It ties together psychology, market analysis, and risk management. Whenever I teach a class, I say: “Show me a trader with good records, and I’ll show you a good trader.” Writing down your trade plans will ensure that you don’t miss any essential mar ket factors.