A trading journal is a record of what you did, why you did it and what happened. Many traders start one and abandon it within weeks because it feels like paperwork. A good journal is simple enough to keep up and structured enough to reveal patterns you cannot see in the moment.

What to record

For every trade, whether real, demo or backtested, note:

  • Date and time, instrument and direction.
  • Higher-timeframe context in one sentence.
  • The reason for the trade, in your own words.
  • Entry, stop and target, and the amount risked in R or percent.
  • Screenshot of the chart before entry and after exit.
  • Outcome in R, including costs.
  • Process grade: did you follow your own plan? Answer yes or no, regardless of whether the trade made money.
  • Emotion before and after: calm, anxious, bored, eager, frustrated.

Separate process from outcome

A trade that follows your plan and loses is a good trade that happened to lose. A trade that breaks your plan and wins is a bad trade that happened to win. If you grade only the money, you will learn the wrong lessons. The process grade is the most valuable field in the journal.

Keep it light

If recording a trade takes more than three minutes, you will skip it. A spreadsheet with ten columns and a folder of screenshots is enough. The best journal is the one you actually fill in.

Weekly review

Once a week, spend twenty minutes answering:

  1. How many trades did I take, and how many followed my plan?
  2. What was my average result in R?
  3. Which setup produced the best and the worst results?
  4. At which times of day did I trade worst?
  5. What is one specific thing I will change next week?

Choose one change, not five. Behaviour changes best in small steps.

Look for patterns

After a month you might notice that most losses come late in the day, or after a previous loss, or on a particular instrument. These patterns are often more useful than any change to your entry rules.

Monthly summary

Once a month, add up your totals and compare them with your plan. Record drawdown, number of rule violations and any changes you made. This turns a collection of notes into a record of your development.

Privacy and honesty

A journal is for you. Write the truth, including mistakes and impulsive trades. If the journal flatters you, it cannot help you.

This article is educational and is not investment advice.