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The Trading Journal That Is Your Personal Trading Mentor

Having a mentor is often very helpful in order to improve in any field and a professional trading journal can do just that for you. It’s not only a place for record keeping, but it should be your daily companion that you consult before making a decision and that shows you where your strengths and weaknesses are.

 

The difference between a teacher and a mentor

A mentor is not to be confused with a teacher. Whereas a teacher gives you an exact approach and tells you how to behave in certain situations, a mentor provides guidance, helps to identify weaknesses and gives you ideas on how to overcome your shortcomings to improve in different areas. A mentor is someone who sits next to you, or can be consulted regularly. He answers your questions and looks over your shoulder without telling you what to do, but by correcting faulty behaviors and patterns.

 

Characteristics of a mentor

Passive guidance

A very important characteristic of  a mentor is that he not necessarily steps in and actively interferes with the decisions his protegée is about to make. A good mentor understands that a mistake made can be very important and provide valuable lessons for the learning process, as long as the mistake does not result in a major negative event which could put the protegée in a position where he cannot recover from.

Mistakes are the portals of discovery. – James Joyce

As we will see, however, making a mistake once is acceptable, but making a mistake twice is a conscious decision that has  to be monitored and avoided.

 

Executable tips

A mentor can be more than just a passive observer of your actions. A mentor is your own personal consultant who you can reach out to for specific tips what to do to become better. A mentor will then go through your behavior, performance and patterns to spot weaknesses and provide ideas on what to change to increase your performance.

 

Charles Kirk on Forbes – support during tough times

In a Forbes interview, Charles Kirk points out that a mentor supports and provides guidance and also provides that push in the right direction, especially when things seem to not go so well.  Furthermore, he said that mentors help their students to stay persistent.

 

Dr. Steenbarger writes in his blog – incentives during mistakes

Mike Bellafiore from SMB Capital said that their traders often make great progress during mentoring. He provides one example where a “mentor threatened to shut down a junior trader if he made a mistake a second time”. This served as a positive incentive for the trader to be more aware of his actions, similar to sports coaches who sit their players on the bench after repeated bad performance.

 

What the Edgewonk trading journal does for you

The Edgewonk trading journal is capable of analyzing all facets of trading, be it purely  mathematical and analytical when analyzing your hard trading performance data, the way a trader respects and responds to his trading rules and discipline, or how psychology and emotions impact his performance. Thus, the Edgewonk trading journal is your personal trading mentor that is always there for you when you need it.

 

Support during tough times

The analytics that evaluate the emotional component of trading analyzes your trading decisions, your discipline and your behavioral patterns. Therefore, even though you might run into a bad beat and enter a losing streak, the emotional analytic components show you exactly whether you are still performing at a high level or if there are some flaws in your behavior. Whenever the emotional analytic components are positive, you are disciplined, stick to your rules and perform well. Look at our video where we explain why the process-oriented mindset is so important.

 

Executable tips

Edgewonk uses a variety of unique and powerful algorithms that crunch your trading performance data to exactly find out when and why you are losing money, or leaving money on the table. All the features are set up in a way that the visualized data can be used directly to adjust your approach step by step. If you wonder whether there is room for improvement in your trading, consult the Edgewonk features and they will show you.

But Edgewonk goes even deeper than that. We not only analyze your performance metrics, we also evaluate how emotions impact your performance, which are the most common mistakes, when you make them and what causes you to break your rules.

 

Invisible reminder

If you know that you have to go over your trades with your mentor after the trading session is done, you are more likely to stick to your rules and avoid impulsive and unnecessary mistakes because you want to save yourself from the blushes that making the same mistakes mean.

By keeping a trading journal and manually entering your trades, you are forced to actively go through your trades once again when entering trades. If you know that you have to enter another painful trade where you have made the same mistake for the 5th or 6th time, you will be able to avoid some of the negative behaviors.

For this purpose, we created the graphic below. You can print it out and hang it next to your trading screen, where you can see it at all times. Next time you are about to repeat a mistake or violate your rules, the Wonk will remind you to stick to the plan!

 

thumb_edgewonk_teacher
Right click and select ‘Save as’ to download your own Wonk-reminder

 

Copyright attribute: Board designed by freepik.com

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