Trading Journal: How to Learn Using It?

We’ve talked a lot about the importance of a trading journal and discipline. Easier said than done. In the support chat, clients share: "I'm getting tired of recording my deals in the trading journal." We’ve got three methods to turn your journaling into the best part of trading.  
 

1. Start basic and advance the journal gradually. 

According to psychologists, one of the causes of laziness is the need “to expend effort on long-term goals that do not provide immediate gratification” (Neel Burton. The Psychology of Laziness). Keeping a journal really takes time and effort, because a trader needs to transfer data on orders, correctly calculate the planned and real profit, analyze the numbers, and draw up a plan for future actions. And this often brings significant results in the long term, and not here and now. 

Solution: Try to start with the minimum data required. Even brief records of all trades are essential for work (compared to their complete absence). At a minimum, you will be able to trace your choice of trading instruments and the profit received from these transactions. 

The basic journal includes: the date of trade, trading instrument/symbol from the terminal, the direction of trade (long/buy or short/sell), trade entry and exit points, Stop Loss, and financial result. This list will help you create a minimalist trading journal from scratch. 

As you gain new trading experience, you also need information about the market, initial risk, trade entry trigger, entry/exit date and time, position size, timeframe, a strategy used, risk/reward ratio, points, Take Profit, commissions and swaps. 
 

2. Customize the journal. 

You can find a ready-made template on the Internet, but only you can make it truly useful and convenient. In order to turn the journal into the centre of your work in the financial markets, adapt it to your goals and needs. 

What can be included and customized? 

• Screenshots of charts — for example, a screenshot of a higher timeframe, a screenshot of a chart during entry into a trade and exit; 
• Information about the trading instruments you use and those you plan to trade; 
• Notes section — write down thoughts and track your mood while trading; 
• Links to important news and dates from the economic calendar; 
• Links to educational articles and videos; 
• Inspirational quotes — they motivate you to go on; 
• Overview of the trading day/month/quarter; 
• etc. 
   

3. Read and re-read it regularly. 

Why do we record our trades in the journal when they’re already in the history of orders in the terminal? We do it to rethink our trading activities and compare it with the previous ones. 

Make it a rule to re-read the journal periodically. It can be helpful to ask yourself a few questions, such as: What trades are you taking? Is there a connection between them? Is there a pattern? When are positions opened and closed? What is driving you at this moment? Is your reaction to the market moves always the same? 

Be a detective to follow your own traces and reach greater profits. 
 

Apply at least one of these tips to your work, and it’ll make a significant change to your trading. 

 

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