Training method to produce results as quickly as possible #9

A record that preserves the reasons for judgments

Hello. This is THE DAYTRADE.

Are you keeping a trading log?

I think many people do.
But isn’t the content written in those records something like this?

• Entry price
• Exit price
• How many pips were gained or lost

Of course, these are important too.
But if that’s all,you won’t know why you won or why you lost.

This time, the practice is to leave the reasons for judgments in the records.

If you only record the results, you can’t fix anything

“+30 pips,” “-20 pips”

Even by looking at only the numerical results, you won’t know what to fix next.

Even a losing trade might have had correct judgment.
Even a winning trade may have just been good luck.

The result is decided by the market.
But,the judgment is something you decide.

What can be fixed is only the judgment you made.
Therefore, what should be recorded is the “reason for the judgment.”

Write the reasons in order starting from the daily chart

My approach is daily chart → 4-hour chart → 1-hour chart → 5-minute chart, in that order.
Among these, the most important are thethree: daily chart, 4-hour chart, and 1-hour chart.

Therefore, the reasons in the record are written in this order.

• Daily chart：Is the major trend up or down? Will you ride the daily trend or switch to the 4-hour chart?
• 4-hour chart：Is the trend up or down? Where are the horizontal lines (support during a pullback or a return high) located?
• 1-hour chart：Is it a pullback (retracement) now? Where is the entry point?
• 5-minute chart：Has an N-wave formed?

If you write in this order, later when you review,you will immediately know which time frame your judgment diverged on.

If the price moves against you immediately after entering, I think the main cause is misalignment with the direction on the higher time frame.
That’s why there is value in starting with the daily chart.

How to write the record (template)

One entry of a record is enough as follows.

What matters isto write the moment you passed as well.
As mentioned in the previous #8, being able to pass is also a valid judgment.

And,write the result at the end.
If you look at the result first, you may want to rewrite the reasons afterward to fit.

How to practice preserving the “reasons for judgments”

① Open the template before judging
Before looking at the chart, prepare the places to write. Writing with the assumption that you will write makes your judgments more careful.

② From the daily chart, write one line each in order
No long sentences. A one-liner like “Daily: Up” or “4-hour: Up, pullback low 〇〇” is sufficient.

③ Write whether to enter or pass
In either case, include the time frame that caused the reason.

④ Add the result later
After the trade ends, or after reviewing the latter scenario, write the result.

⑤ Once a week, line up and review the records
When you line up the reasons for losing trades, you’ll likely find the same misalignment on the same time frame.
That’s where you should fix next.

A judgment that cannot be written is not a judgment

When you keep records, you’ll encounter moments where you can’t write the reasons well.

“It seemed to be going up somehow.”
“It was moving, so I just entered.”

A trade for which you cannot write a reason isa trade entered by a feeling rather than a judgment.

Just by attempting to write a reason, you’ll start noticing trades like this yourself.
Once you can notice them, you can reduce them.

What to do today

• Prepare one template for the record (Notepad or notebook OK)
• From daily to 4-hour to 1-hour to 5-minute, write one line reasons in order
• For both entering and passing, write in the same way
• Add the result at the end
• Once a week, line up the reasons for losing trades

Summary

• A record that only shows results doesn’t tell you what to fix
• What can be fixed is the “judgment” you made
• Reasons should be written in order from the daily chart, one line each
• Record the moments you passed as well, and write the result at the end
• Trades where you can’t write a reason are trades entered by intuition

Next time is #10 “Practice in real trading with smaller lots.”
We’ll finally put these practices to the test on real charts.

Pursue correctness over win rate.
Correctness is determined by whether you can write the reasons.

▼ChartPen | MT4/MT5 drawing tool (¥980)
A tool that lets you write lines and text directly on the chart (Windows MT4/MT5). Writing the reasons for judgments directly on the chart makes recording and review much easier.
https://www.gogojungle.co.jp/re/oaxx7xNztnaAFo9

▼ Monthly series “Chart reading, explanation, interpretation, verbalization” | ¥980 per month
About 33 yen per day for daily environment awareness and the previous day's review. All paid video articles, including a 500 yen article, are unlimited.
・Gold environment recognition video every morning
・Previous day's review (answer check) video
・Practical articles (about twice a week)
・All past paid video articles are unlimited
https://www.gogojungle.co.jp/re/WF1fctiVvx4gmNu

*Practice results vary by individual and do not guarantee profit or the duration of mastery.
*Trading carries the risk of losses. Results vary by individual and do not guarantee profit.