A trading journal is a record where traders document their trades, including the reasons for entering and exiting trades, strategies used, and the outcomes. It helps traders track their performance, identify mistakes, and improve over time.
1. Choose a Format:
Use a notebook, spreadsheet (like Excel or Google Sheets), or trading journal apps.
2. Record Basic Details:
For each trade, note:
Date and time
Asset (e.g., stock, forex pair, cryptocurrency)
Entry price
Exit price
Position size (how much you bought/sold)
Profit or loss
3. Add Notes:
Write why you entered the trade (e.g., trend, pattern, news) and your feelings (e.g., confident, nervous).
4. Review Regularly:
Look back at your journal weekly or monthly. Find patterns in your successful and losing trades.
5. Include Charts (Optional):
Add screenshots or links to charts showing your trade setups.
Example Entry:
Date: Dec 27, 2024
Asset: EUR/USD
Entry: 1.0950
Exit: 1.0980
Position Size: $1,000
Profit/Loss: +$30
Reason: Uptrend with strong support. Entered after bullish candlestick pattern.
Emotion: Confident, followed my plan.
Keeping a journal helps you become a more disciplined and successful trader.