You wrote "I was a bit panicked," "didn't feel great," or "got a little greedy" in your journal... Then what? When you look back at the end of the month, can you see any patterns from those words? No, you can't see anything.
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If your emotion records cannot be quantified or measured, they are almost useless. Today, no vague talk. I will directly teach you a three-step emotion recording method that you can put into a spreadsheet and analyze with data.
Step 1: Score Your Emotions to Replace Vague Descriptions
[What to do]: Replace "a bit panicked" with a number so emotions become data you can calculate.
[How to do it]: In your journal template, add a few fixed dimensions for each trade. Rate each dimension on a 1-5 scale or 1-10 scale. I recommend these four dimensions:
FOMO level: 1 = completely calm, 5 = if I don't buy now it will fly away
Confidence level: 1 = deeply doubtful, 5 = completely certain
Stress/Anxiety: 1 = inner peace, 5 = extremely tense
Self-discipline: 1 = doing whatever I want, 5 = strictly following rules
Record at two points in time: before opening a position and after closing it. Comparing the score changes is valuable by itself. For example, if your confidence was 5 before opening and regret was 4 after closing, it means you overestimated yourself when entering.
Risk reminder: Do not record during the trade. Your emotions will be distorted by price movements. The best time to record is within 10-15 minutes after closing, while your memory is clear but your emotions have cooled down.
Step 2: Use Emotion Tags to Replace Subjective Descriptions
[What to do]: Replace "I think" or "I feel" with standardized emotion tags so you can filter and analyze them later.
[How to do it]: Add a column called "Emotion Tag" in your spreadsheet. Choose only 1-2 keywords each time. Here is a recommended tag library:
Negative tags:
FOMO (fear of missing out)
Greed (wanting to squeeze out every last penny)
Fear (afraid of losing money or giving back profits)
Revenge (rushing to win money back after a loss)
Hesitation (not acting when you should)
Positive tags:
Calm
Patient
Decisive
[Completion standard]: At the end of the month, you can filter all trades with the "FOMO" tag in one click and separately calculate their profit/loss ratio and win rate.
Step 3: Cross-Compare Emotion Data with Trading Results
[What to do]: Use data to find out exactly where your "emotional weakness" is.
[How to do it]: Open your spreadsheet and make two comparisons:
Filter by score: Filter all trades where "Stress" is 4 or higher, then calculate the average profit/loss ratio and win rate. Next, filter trades where "Stress" is 2 or lower, and compare the two groups. If you find the high-stress group has a clearly lower win rate, it means your decision quality collapses under high pressure.
Group by tag: Calculate whether trades with the "FOMO" tag have an average entry price that is too high. Is the stop-loss execution rate lower? If so, it means the most deadly damage FOMO does to you is chasing highs and holding losing trades.
Many people are unwilling to give themselves low scores because they feel "admitting I had FOMO is embarrassing." As a result, the data is fake and the review is completely useless. Honesty is the first requirement for emotion recording. You can lie to yourself, but the spreadsheet will not lie to you.
FAQ
Q: I always rate my emotions by feeling. Today it is 3, tomorrow it might be 4. There is no consistent standard. What should I do? A: Make an "anchor card" and stick it next to your spreadsheet. For example, "FOMO 5 = I had the thought 'if I don't buy now, I will never get another chance.'" Anchor the extreme values, and the middle values become easier to rate.
Q: I have been recording emotions for two weeks, but I don't see any patterns. Am I doing it wrong? A: Two weeks is too small a sample size. Collect at least 30 trades before doing a data cross-comparison. Most behavior patterns only become visible with enough samples.
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Next Step
Go update your journal template now. Add two columns: "Emotion Score (4 dimensions)" and "Emotion Tag." For the next week, fill in these two fields within 10 minutes after every trade closes. Come back in two weeks and filter the trades with the "FOMO" tag. You will see the truth.
