This article concludes the 4 part series on my top option trading tips. Option Trading Tip 4 - Keeping a Personal Option Trading Journal - may be the most challenging of the four tips because, in a way, it requires the most discipline.
That's pretty much what my own reaction used to be. Don't get me wrong - I always kept great records when it came to the details of my individual trades. And my personal spreadsheets were a joy to create and a source of pride. But what I always resisted was putting together and including comprehensive notes related to the trades - such as my rationale for initiating the trade, what this strike price, why that expiration date, what my concerns were, what adjustments would I consider if the underlying stock did this or that, and any other number of factors and considerations that was relevant to each specific trade.
In a way, I stumbled upon the power and benefits of maintaining a trading journal when I began sharing the details of my personal trades on a weekly basis with the Leveraged Investing Community. It's one thing for me to TELL you everything I know about using options to acquire high quality businesses at heavily discounted prices, or to generate high yield income on low risk stocks.
Showing my own option trading journal has been a terrific - not to mention popular - teaching tool and perk of the Leveraged Investing Club. Because members of the Leveraged Investing Club can not only look over my shoulder and watch how I implement the principles of Leveraged Investing. But they can also learn from my mistakes when I sometimes fail to follow my own advice from time to to me.
What I found most surprising was that this "teaching tool" designed to help other traders with their own results actually made me a better trader and investor.
And the quicker to begin keeping detailed records, notes, and other thoughts about each one of your own trades, the sooner you'll discover the same thing for yourself. The objective with Leveraged Investing is to take the best qualities of trading and investing and combine them into a structurally advantaged approach or method to build real and lasting wealth in the stock market at an accelerated rate.
The act of articulating your thoughts will not only clarify those thoughts - it will also lead to deeper insights and epiphanies you otherwise never would have experienced. How you go about creating and maintaining your own personal trading journal is entirely up to you, of course. You should customize it so that it's comfortable and works for you. And it can be as simple or as elaborate as you prefer. How about a sample? Here's an example of the kind of personal trading details and analysis that I put together each week.
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