What Is a Trading Journal?
💡 Definition
A trading journal is a structured record of your trades, context, decisions, and emotions. It transforms experiences into data, enabling feedback loops that improve expectancy, discipline, and consistency.
What gets measured gets managed. Journaling reveals which setups, times, and behaviors actually pay — and which silently drain edge.
Visual Overview
Capture → Analyze → Improve (Feedback Loop)
Journal entries feed metrics and insights. Those insights become rule changes — closing the loop that upgrades performance.
What to Capture (Every Trade)
🧱 Setup & Context
Market regime, symbol, timeframe, pattern/trigger, key levels, catalysts.
📐 Risk & Plan
Entry, stop, target(s), RRR, r% size, session/time window, checklist result.
📊 Outcome
Exit(s), P&L in R, slippage, MAE/MFE, screenshots/links.
🧠 Psychology
Pre-trade state (energy, mood), emotions during trade, discipline score.
🏷️ Tags
A/B/C quality, session (open/mid/close), catalyst (earnings/macro), impulse/plan.
Ready-to-Use Templates
📝 Minimal Text Template
Setup: [pattern + timeframe] • Context: [trend/breadth/vol] • Level: [key S/R]
Plan: Entry ___ / Stop ___ / Target ___ • RRR ___ • Size r% ___
Execution: [trigger? yes/no] • Discipline Score: __/10 • Emotions: [calm/tense/etc]
Outcome: +/− __R • MAE/MFE: __/__ • Notes: [what to repeat/avoid]
📊 Column Headings (Spreadsheet/Notion)
# • Date • Symbol • Direction • Setup • Context • Entry • Stop • Target • RRR • r% • Size • Plan? • MAE • MFE • Exit Price • Net R • Session • Tags • Notes • Screenshot URL
Journal Metrics That Matter
E = p×AvgWinR − (1−p)×AvgLossR= ΣR / trades (primary KPI)Avg R by Setup/Session/Quality= Planned / Total (goal ≥ 80%)R by Open/Mid/Close — cut weak windowsMFE vs realized R (leaving too much?)Why Journaling Works
- Clarity: Forces explicit plans and checklists before risk is taken.
- Feedback: Converts wins/losses into lessons; trends emerge from noise.
- Discipline: Logging behavior reduces impulses and rule breaking.
- Optimization: Identifies high-EV slices (setups/hours) to double down on.
Practical Journaling Playbook
Daily Routine
Pre-market: Write the plan for A-setups only; define levels, triggers, and RRR≥1:2.
During session: Log trades in real-time (or via quick voice notes) to avoid hindsight edits.
Post-market: Add screenshots, tag trades, and compute R. Note 1 repeatable and 1 avoidable behavior.
Weekly: Review by tag/time; choose one tweak (add/remove rule). Don’t change everything at once.
Common Journaling Mistakes
⚠️ Avoid These Errors
- Journaling only on good days (survivorship bias).
- Writing narratives but skipping numbers (no KPIs = no improvement).
- Editing entries after the fact (hindsight bias).
- Too many tags to analyze (keep a small, stable taxonomy).
- Changing the system based on tiny samples.
Advanced Ideas
🧮 R-Distribution & Monte Carlo
Simulate shuffled trade sequences to stress-test drawdowns and refine r%/heat.
🤖 Semi-Automation
Auto-import fills; add dropdown tags & checklists; screenshots via hotkey for zero-friction capture.
🧭 Process Scores
Score each trade 0–10 on plan adherence; correlate score with R to prove discipline matters.
🔗 Psychology Integration
Track mood/energy and “impulse vs planned” tag — powerful for curbing overtrading & revenge trades.
The Bottom Line
Your journal is your edge lab. Capture clean data, analyze key metrics, and make one focused improvement at a time. Over weeks and months, small refinements compound into consistent performance.