Developing a Trading Log and

Why You Need One

Stephen Hill, CEO AIQ Systems
Wednesday June 4th, 7pm eastern
Agenda

• Why a trading log

• Basic information to add
• Market Analysis
• Group and/or stock analysis
• Entering and exiting trades
• Follow up analysis
Not Just a Trading Log

• A Trading Log is nothing more than an

organized way to keep track of your
transactions

• Savvy traders know that the real

benefit of an effective Trading Log is
its tremendous value as an educational
and self-awareness tool
What is a Personal Trading Log

• A detailed personal trading process

that is executed in exactly the same
way all the time

• Developing a trading process can be an

interesting challenge because, to be
useful, it must be personal
Starting

• Date, time and day of the week

• Personal assessment of how you feel, be
honest rank from 1 lowest, 10 highest
• The lower the rank, the less likely you
are to trade well
Market Assessment

• Enter the daily, weekly and monthly

percent change in the SP500 and
NASDAQ. This is your reference point.
• Look at market breadth for
divergences and trends ADLine, HI/LO
Market Assessment

• Determine support and resistance

(closest) from recent peak and trough
• Determine overall market volume
trend – helps us decide if a trend has
legs
Market Assessment

• Analyze all the input and give a market

prognosis on scale of 1 – 10. Note why you
made this prognosis
Review prior days logs

• Enter exits made and date

• Enter gain/loss
• Make a note of what seemed out of the
ordinary (bad fills, market moved very
quickly etc)
Stock Selection Technique Statement

• Detailed statement in every log of what

your trading strategy is
• Include bullish, bearish, non trending
market conditions
• Include your process for the trading
day e.g. exit stopped positions
• Include your capitalization rules e.g.
how much of my cash per position
Stock Selection Technique Statement
Exit Strategy Statement

• Statement of how you exit positions

Today’s Stock Picks
Today’s Exits
The Complete Log
Review Time

• Once a week review your logs

• Did you follow your rules?
• Be honest with yourself on reviewing
losing trades
• Am I winning? If not why not?