Which habits compound in trading?
Small habits compound like interest: the daily review, the pre-trade check, the consistent size. None matters in a day; all matter across a year. The compounding habits are worth identifying.
What are yours?
- the small habit that compounded for you
- how long before the payoff showed
- the habit you wish you'd started earlier
The journal guide is the classic compounding habit.
Background: How to keep a trading journal that actually improves your trading
A journal turns a pile of trades into evidence. What to record, the numbers worth calculating and a weekly review routine that takes less than an hour.
What should a trading journal include?
For each trade: the pair, direction, size, entry, stop, target, risk, the reason for the trade, how you felt, the result in money and in R, whether you followed your plan, and chart screenshots.
How do I calculate expectancy?
Multiply your win rate by your average win, then subtract your loss rate multiplied by your average loss. Measured in R, a positive result means the approach has made money per trade on average.
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