What It Is
A trading journal is a systematic record of every trade you take, including the setup, entry/exit, position size, rationale, emotions, and outcome. It transforms trading from guessing to science by creating data you can analyze.
Key insight: Most traders have no idea what their actual win rate, average R, or best setups are. Without a journal, you're operating blind — repeating mistakes you're not even aware of. Your journal is your personal trading edge discovered through data.
The best traders in the world all journal. It's not optional for long-term success. The data it provides allows you to double down on what works, eliminate what doesn't, and continuously improve in a measurable way.
What to Record
Date, asset, timeframe, setup type, entry/exit price, stop loss, target, position size, R-multiple result, and a screenshot of the chart at entry.
Were you calm or emotional? Did you follow the plan? Were you chasing? Were you revenge trading? This emotional data often reveals patterns invisible in the numbers alone.
Every weekend, review your journal. Calculate your win rate, average R, and expectancy by setup type. Identify your best-performing patterns and market conditions. Allocate more capital to what works, cut what doesn't.
The most valuable journal entry isn't the winner — it's the mistake you documented honestly. Every mistake you capture and review becomes one you're less likely to repeat. Your journal is compound interest for your skills.
Continue through core concepts
Compare this reference with related structures and readings before applying it to a live chart.