People often act less rationally on the stock exchange than they believe. Emotions, routines and cognitive distortions influence decisions even with experienced traders. The behavioral economy provides clear explanations – and shows ways to recognize typical mistakes in thinking.
A method from practice has proven itself: the trading diary. Those who systematically document and reflect their actions can make better decisions in the long term. The trading expert Andre Witzing from Trading.de and gave advice for this article on how this tool can be used sensibly-and why consistent self-observation is often an underestimated success factor in active retail.
Act against your own psychology: why a diary helps to better trade
Anyone who acts on the stock exchange constantly makes decisions under uncertainty – often in the shortest possible time and under emotional pressure. Despite all the data, charts and strategies, human behavior remains one of the greatest strangers. For decades, studies from behavioral economy have shown that people rarely act purely rationally in such situations. Emotions, routines and cognitive distortions often influence decisions more than any market analysis.
An instrument that has proven to be helpful in practice is the diary for trading decisions and results. It forces you to deliberately document decisions and to question it afterwards.
The diary of the diary can efficiently help to trade better, says expert Andre Witzel, founder of the platform trading.de. He emphasizes: “A diary creates clarity – about your own behavior, about recurring mistakes and about what really works. Anyone who deals with your own patterns can act more rationally in the long term – and that is exactly what is a decisive advantage in the financial markets.”
- Tip: Witzel offers for that Trading diary A free Excel template that facilitates entry and supports a structured documentation.
Psychology beats logic: typical thinking errors in trading
Man is not a rational computer – even if classic economic theories assumed for a long time. The stock exchange shows how strongly psychology and unconscious thinking patterns influence decision -making. Behavioral finance research, justified by the economic researcher Daniel Kahneman and Amos Tversky, has shown how typical cognitive distortions lead to systematic errors in financial behavior.
Three classic examples of non-rational thinking in economic issues are:
- Lossa version: losses are perceived emotionally about twice as strongly as profits of the same high. This distortion means that traders hold on loss positions in the hope of a soon -to -be – although an exit would be strategically sensible. Conversely, many tend to take profits with them too early, for fear that the sheet will turn.
- Overconfidence Bias: Especially in phases of short -term success, traders overestimate their skills, take up too high risks or ignore warning signals. The confirmation error (Confirmation Bias) also plays a role: information that matches your own market opinion are preferably perceived – critical counter -arguments are hidden.
- Recency Bias: Current events are overrated, but long -term trends or experience is neglected. This effect increases in volatile market phases, which can lead to impulsive action.
All of these mechanisms often run unconsciously. They cannot be completely turned off – but recognized with a little practice. And this is exactly where the idea of a trading diary comes in. It helps to understand such patterns and prevent prematurely action.
The idea of the trading diary: a simple tool with great effect
A trading diary is an instrument for self-observation-and therefore an effective means of acting more consciously. Unlike the classic trading journal, the aim is to not only record the numbers of a trades, but also the thoughts, motives and emotions that have led to the decision, explains Trading expert Witzel.
- Such a journal documents, for example, entry into a position, the market analysis at the time of the decision, the personal assessment of the risk and expectations of the further course.
- The reflection according to the trade is just as important: was the plan observed? Were there any deviations? Which feelings played a role during trading?
The value of this tool lies in its continuity. Anyone who regularly makes entries will recognize recurring patterns over time – such as impulsive decisions in stressful situations or the consistent overlooking of certain market signals. The long -term evaluation of strategies is also simplified by the comprehensible documentation.
In contrast to automated trading systems or analysis tools, the trading diary relies on personal reflection. It requires honesty towards one’s own behavior – and thereby creates the basis for sustainable improvement and Correct self -assessment. That is precisely why it is part of daily routine for many professional traders.
What a good trading diary should contain
An effective trading diary is an indispensable tool for every trader to refine trade strategies and be successful in the long term. It enables structured self -reflection and helps to identify both successful patterns and recurring mistakes.
Andre Witzel worked for us which elements should contain a comprehensive trading diary:
- Basic merchant data:
- Date and time of the trades: Capture the exact time to recognize temporal patterns.
- Traded instrument: write down the specific asset, such as stocks, options or currency pairs.
- Position size: Document the number of traded units.
- Entry and exit price: Hold in which courses you open and closed positions.
- Stopless and Take Profit Levels: note planned exit brands for risk control.
- Reason for the trades:
- Analysis form: Describe the technical or fundamental analysis that has led to the trading decision.
- Market conditions: Write down relevant market information such as business data or messages that could have influenced the trade.
- Emotional and psychological factors:
- Mood before, during and after the trade: reflect on your emotions to understand their influence on your decisions.
- Self -evaluation: Analyze whether you have followed your trading plan or acted impulsively.
- Result of the trades:
- Profit or loss: Calculate and document the financial result.
- Performance indicators: Collect metrics such as the risk yield ratio or the maximum drawdown.
- Visual documentation:
- Charts screenshots: Add pictures of the market situation at the time of the trades to facilitate later analyzes.
The consistent and detailed guidance of such a diary enables you to recognize trade patterns, optimize strategies and strengthen your own discipline.
Conclusion
A clear view of your own behavior is often more valuable in stock exchange trading than any market forecast. Anyone who recognizes typical mistakes and observes themselves consistently creates the basis for well -founded decisions.
A trading diary helps to bring structure to your own approach and to question emotional impulses. Especially under pressure it shows how important an honest and continuous reflection is. If you take this step seriously, not only develop better trade strategies, but also strengthen your own discipline – a decisive factor for long -term success.
15.05.2025