A trading journal is a log of your trades. It shows what you did and why, so you can learn from what works and what does not.
Why keep a journal?
Memory is selective. You remember the big win and forget the small losses that pile up. A journal replaces feelings with data. It also helps you check whether you follow your own rules, such as your maximum risk per trade (see Risk Management: The Basics).
A journal does not make you profitable by itself. It does give you the material to judge your approach honestly.
What to record
Numbers
- Date and time, product and direction (buy or short)
- Entry price, stop, target and exit price
- Size, costs and final result in euros
- The amount you planned to risk
Context
- What type of setup it was and why you entered
- What the market looked like
- How you felt before, during and after the trade
- Whether you followed your plan, and what you will do differently next time
Picture
- A screenshot of the chart at entry and exit, stored by date
Keep it simple. A journal you keep up is better than a detailed one you abandon after two weeks.
Weekly review (20 to 30 minutes)
- Add up: number of trades, win rate, average win, average loss and result after costs. See Reading Your Profit and Loss Statement for how.
- Group by setup: which approach produced what?
- Count your mistakes: which mistake came back most often?
- Look at emotions: how did it go when you were rushed or unsure?
- Pick one improvement for next week, and write it down.
Example with 16 trades over a few weeks: 8 breakout trades with 3 winners and 8 pullback trades with 6 winners. That looks like a difference, but with 8 trades per group it can be chance. You note it as a hypothesis and check it over the next period.
Monthly review
- Your account over time: plot the balance by day or week. Do you see a steady line or big jumps?
- Are your setups changing? Markets change. An approach that worked last month may not work now.
- Read your notes on emotions and mistakes and look for repeating patterns, such as bigger positions after a win.
- Test one idea at a time and let your numbers decide, not your feelings.
Spreadsheet or dedicated software?
| Spreadsheet | Journal software | |
|---|---|---|
| Pros | You set the layout, no extra cost, easy to start | Can import trades from your broker, calculates automatically, shows charts |
| Cons | You type and calculate everything yourself | Usually costs money and is less flexible |
| Fits | Few trades per month | Many trades per month |
With software, check which brokers it supports and what the subscription costs.
Step-by-step plan
- Choose a format: spreadsheet or software.
- Make a list of columns for the data above.
- Record every trade on the same day, including the losing ones.
- Set a fixed weekly time for your review.
- Choose one improvement at every review.
Work it out yourself
Test yourself
Practice questions to check your understanding, not advice.
According to the tutorial, what is the main benefit of a trading journal?
- It automatically makes you profitable
- It replaces feelings with data, so you can assess your approach honestly
- It predicts which trades will win
Show answer
Answer:B. It replaces feelings with data, so you can assess your approach honestly
Memory is selective. A journal replaces feeling with data. It does not make you profitable automatically, but gives you material to assess your approach.
You have 8 breakout trades with 3 winners and 8 pullback trades with 6 winners. What is the right conclusion?
- Pullback trades are proven to be better
- You should stop breakout trades
- With 8 trades per group it may be chance: note it as a hypothesis and check it later
Show answer
Answer:C. With 8 trades per group it may be chance: note it as a hypothesis and check it later
With so few trades per group a difference can be chance. The tutorial advises noting it as a hypothesis and checking it over the next period.
What does the weekly review look like according to the tutorial?
- A short review of 20 to 30 minutes, with one improvement point for the next week
- Looking at your balance for an hour every day
- Only reviewing your winning trades once a year
Show answer
Answer:A. A short review of 20 to 30 minutes, with one improvement point for the next week
The weekly review takes 20 to 30 minutes and ends with one improvement point for next week, which you write down.
Which trades do you record in your journal?
- Only the winning trades
- Every trade on the same day, including the losing ones
- Only trades above a certain amount
Show answer
Answer:B. Every trade on the same day, including the losing ones
Step 3 of the step-by-step plan: record every trade on the same day, including the losing ones. Otherwise your picture stays distorted.
Frequently asked questions
- What should I record in my trading journal?
- For each trade, record the numbers (date, product, entry, stop, target, exit, size, costs, result) and a short note. Write down why you entered, how you felt and whether you followed your plan. A screenshot of the chart helps when you look back. Start small, or you will not keep it up.
- How often should I review my journal?
- A short weekly review of 20 to 30 minutes works well for many people. Once a month, look at the bigger picture. Pick a fixed moment so it becomes a habit.
- What can I learn from my journal?
- You see which setups work for you, which mistakes repeat and whether you follow your rules. Be careful with conclusions from few trades: with 10 trades a pattern can be chance. The more trades you have, the more reliable the picture.