The Trading Journal: Why It's Essential and How to Keep One

Why Journal?

Trading without a journal is like trying to improve at golf without knowing your score. You might feel like you're getting better, but without data, you're guessing. A journal provides the feedback loop necessary for real improvement.

What Journaling Reveals

• Which setups actually work for you (not in theory, in practice)

• Patterns in your losing trades (time of day, emotional state, setup type)

• Your actual win rate and average win/loss sizes

• Behavioral patterns you weren't aware of

What to Track

Basic Trade Data

• Symbol, date, time

• Entry price, exit price, position size

• Stop loss level (planned vs. actual)

• Profit/loss in dollars and percentage

Setup Information

• Setup type (breakout, pullback, momentum, etc.)

• Why you took the trade (thesis)

• Screenshots of entry and exit (invaluable for review)

Context

• Market conditions (trending, choppy, risk-on/off)

• Relevant news or catalysts

• Your emotional state (calm, anxious, overconfident)

Post-Trade Reflection

• What went right?

• What went wrong?

• Would you take this trade again? Why or why not?

• Lessons learned

How to Review

Weekly: Quick review of the week's trades. Calculate win rate, average win/loss, net P&L. Note any patterns.

Monthly: Deep dive. Which setups performed best? Which underperformed? What were your biggest wins and losses, and why?

Quarterly: Strategic review. Is your edge still working? What needs to change?

Tools for Journaling

• Spreadsheet (Excel, Google Sheets): Free, customizable, requires discipline

• Notion/Obsidian: Good for combining data with notes and screenshots

• TraderSync, Edgewonk, Tradervue: Dedicated trading journal software with analytics

The Honesty Requirement

A journal only works if you're honest. Record the trades you're embarrassed by. Note when you broke your rules. Admit when you got lucky. The uncomfortable entries are often the most valuable for learning.

Start Simple

Don't let complexity stop you. Start with the basics: symbol, entry, exit, P&L, and one sentence on why you took the trade. You can expand later. A simple journal you actually use beats an elaborate one you abandon.