After paper trading or backtesting your trading strategy, you should keep a journal of your trading experiences. This is where a trading journal can help.
A trading journal can be maintained in a variety of ways. A trading journal can be maintained in Excel, a digital diary, or a notebook.
Keeping a trading journal is an important part of any trader’s day. It can be used to keep track of trades, assess performance and identify trends. In this article we will explore the benefits of keeping a trading journal, as well as what it should contain.
What is a trading journal?
A trading journal is a notebook in which you can keep track of all your trade-related information.
You can keep track of your trading strategy, entry and exit points, profit and loss, reasons etc.
What are the types of trading journals?
Time for the big question: manual or digital? Some traders prefer the old-school charm of pen and paper, while others go all-in with digital journaling. It’s like choosing between a classic car and a shiny new Tesla.
There are 2 types of maintaining a trading journal:
Manual trading journal
In a manual trading journal, you will manually record all of the details in a notebook, digital dairy apps, or a simple excel sheet.
Automated trading journal
You will need to import or sync your trading account into an automated trading journal site so that it can pull all of the details from it and do all of the repetitive work for you.
Why do you need a trading journal?
Pros :
Maintaining a trading journal allows you to see where you went wrong and where you need to improve.
It assists you in determining the best strategy with the highest win rate.
You will have enough data to refer to even years later.
You will be less likely to make mistakes in the future since you’ve seen where you went wrong in your own words.
It assists you in holding yourself accountable.
You will be able to track your profit and loss as well.
Cons
Manual trade journal :
Entering all of the details and performing the calculations takes time.
You cannot achieve the potential results unless you are true to yourself.
Automated trade journal :
You must import or sync your data, which may not be completely secure.
Reasons Why People Don’t Use a Trading Journal
1. Lack of time—okay, we get it, life’s busy. But think of journaling as a small investment that can lead to big returns. It’s like spending a few minutes on a puzzle that helps you win the whole game.
2. Underestimating its importance—journaling isn’t just about numbers; it’s about your growth. It’s like skipping the warm-up before a workout—you might regret it later.
3. Fear of confronting mistakes—no one likes admitting they made a boo-boo. But here’s the thing: your journal is your non-judgmental friend. It’s like venting to your bestie without worrying about being judged.
Not knowing how to start—ever stared at a blank canvas and thought, “What do I even paint?” We’ve all been there. But just start somewhere—anywhere! It’s like taking the first step on a hiking trail; the journey unfolds as you go.
How to keep a trading journal?
You can record all important trading details in rows and columns or simple hand drawn lines in a manual trading journal.
In an automated trading journal, make sure the site or app contains all of the information you need for future reference.
The most important parameters to track :
Strategy name and details,
Date and time of entry and exit,
Entry and exit price,
Planned vs actual entry and exits,
Profit or loss,
My mistakes,
Where I was right etc.
Other important details include
Initial capital,
Closing capital,
Deposited / withdrawn,
Global market direction,
Local market direction,
Are there any external factors affecting the market,
Technical position,
Fundamental position,
My prediction etc.
Check out the free notion-trading-journal template
Where to keep a trading journal ?
You can keep a trading journal in a variety of ways, including the ones listed below.
- You can use a simple notebook to keep a trading journal.
- You can also use excel sheets to maintain a trading journal. Check out this video to learn more..
- You can also use note taking apps like notion to record everything. Check out this video to learn how to use Notion to do it.
- Sites like tradervue and tradersync helps you with trading journal as well.
- You can also take screenshots of the charts, positions, profit and loss of the day in the portfolio and later record every detail in a notebook.
- You can also record a quick audio, video or screen record your trades to keep a trading journal.
List of Trading Journal Software
Alright, so you’re ready to get your trading journal game on! Here are a few software options that traders like you are using:
- TradingView: A crowd favorite, TradingView offers intuitive charts and analysis tools. It’s like your trading buddy with visual aids.
- Edgewonk: This one’s all about tracking your trading performance. Think of it as your personal trading coach, giving you feedback and helping you improve.
- Tradervue: Tradervue is like a storytelling platform for traders. You record your trades, add comments, and watch your trading story unfold.
Now, what’s inside these software gems?
They’ve got features like trade analysis, performance tracking, and even risk management tools. It’s like having a trading Swiss Army knife in your digital pocket. Choose the one that clicks with your trading style, and you’re good to go!
Steps to Journaling a Trade
Let’s break it down: first, document the trade details. It’s like creating your trading birth certificate.
Then, record why you jumped into the trade. It’s like explaining to your future self why you did that cool move.
Describe your analysis and strategy. It’s like laying out your game plan in a playbook.
Don’t forget those emotions. Were you dancing or biting your nails? It’s like capturing your feelings in a snapshot.
Once the trade ends, log the exit and results. It’s like putting a period at the end of a sentence.
Last but not least, reflect on the trade. What did you learn? It’s like having a post-game interview with yourself.
Of course, let’s get into the nitty-gritty with a human touch:
How to Review Your Trading Journal?
A. Alright, think of your trading journal like a time capsule. Regularly flipping through those pages is like reminiscing about your trading adventures—some good, some not-so-good. It’s like revisiting old memories to understand your present and shape your future.
- This isn’t just about nostalgia; it’s about growth. By analyzing your past trades, you’re basically giving yourself a crash course in trading success.
B. Imagine your journal as a treasure map, and the clues are right there on the pages. You’ll uncover patterns and trends that are like X-marks-the-spot for your trading wins.
- Did you spot a trade setup that always seems to work? That’s like finding a secret passage to success. You’ll want to explore that route more often.
- Oh, and those trades that went sour? They’re like caution signs on the map. If you keep bumping into them, it’s time to reroute your trading strategy.
- Ever read a book and got super invested in the characters’ emotions? Your journal does that too. It captures your feelings during trades. So, if emotions drive you to make impulsive moves, now you know. Use this info to keep your cool.
C. Ready for the twist in the story? It’s time to use those journal insights to level up your trading game.
- Remember that time you baked a cake and wished you added more chocolate chips? Same idea here. If your journal reveals strategies that work, amplify them like a DJ cranking up the beats.
- Got a sneaky suspicion that certain setups aren’t your pals? Adjust, tweak, or even ditch them. It’s like cleaning out your closet of trading strategies.
- And those “aha” moments? If your journal hints at a new strategy, follow that trail. It’s like discovering a new flavor and adding it to your trading recipe.
- Now, the emotional roller coaster—time to build resilience. If your journal shows emotions often steer you off-course, it’s like getting a navigation app for your feelings. You’ll stay on track better.
So, review that journal like you’re solving a puzzle. Those patterns, trends, and emotions are the pieces. Put them together, and you’ll have a clearer picture of what works, what doesn’t, and how to tweak your trading path. It’s like having a secret guidebook to trading success. Keep at it, and happy journal hunting!
Lessons learnt
Though it takes time for me to record all of the details after each trade, I always make sure to keep a record of everything in some form or another. I alternately use the Notion app and screenshots.
It has helped me identify my mistakes and reduced it to a greater extent.
It also helped me avoid emotional mistakes while trading.
So never ever miss this step…!!
Where to learn about trading journal for free?
You can actually track every little detail in your trading journal, but these are the most important things you should track in your trading journal.
FAQs
Q: What is the best trading journal?
A: There’s no one-size-fits-all answer, but popular options include TradingView, Edgewonk, and Tradervue. The best journal is one that suits your trading style and helps you track and analyze your trades effectively.
Q: What should a trading journal include?
A: Your trading journal should include trade details, rationale, analysis, emotional state, exit outcomes, and post-trade reflections. Think of it as a detailed diary of your trading journey.
Q: What does a trading journal look like?
A: It can be physical or digital. A physical journal might resemble a notebook with entries about your trades. A digital journal could be a spreadsheet, an app, or a document on your computer.
Q: Best trading journal India?
A: For traders in India, you can explore trading journal software like TradingView, Edgewonk, and Tradervue. See which one aligns with your preferences.
Q: Trading journal Zerodha?
A: Zerodha doesn’t have a built-in trading journal, but you can use features like tags or demo trade or manually maintain one using spreadsheets or dedicated journaling platforms.
Q: Why is a trading journal important?
A: A trading journal acts like a compass on your trading journey. It helps you learn from past trades, refine strategies, manage emotions, and ultimately make more informed decisions.
Q: How do you make a trading journal in Excel?
A: In Excel, create columns for trade details, entry rationale, analysis, emotions, exit outcomes, and reflections. Input data for each trade and use Excel’s functions for calculations and analysis.
Q: What is a trading journal?
A: A trading journal is a record of your trading activities. It includes details about each trade, your reasons for entry, analysis, emotional experiences, exit results, and lessons learned.
Q: How to do a trading journal?
A: Start by recording trade details, reasons for entry, analysis, emotions, exit outcomes, and reflections. Regularly review and adjust your strategies based on journal insights.
Q: Trading journal examples?
A: A trading journal might include specifics like date, time, entry and exit prices, strategy, analysis, emotions experienced, and post-trade reflections. It’s a personalized record of your trading journey.
Q: How to maintain a trading journal?
A: Consistency is key. After each trade, enter relevant details into your journal. Regularly review past trades, identify patterns, and adjust your trading strategies accordingly.
Q: How to use Notion for a trading journal?
A: Notion offers flexible templates to create a digital trading journal. You can customize it to include sections for trade details, analysis, emotions, outcomes, and reflections.
Q: How to journal day trading?
A: For day trading, focus on quick and concise entries. Capture entry and exit times, reasons for the trade, analysis, your mental state, and the results. Regularly review your journal for insights.
Remember, your trading journal is your personal tool. Tailor it to your needs and trading style, and use it as a guide to improve your trading decisions over time.
Takeaways
- Trading journal is a notebook in which you can record all of the trading related details.
- You can keep a trading journal in a manual or automated way.
- Keeping a trading journal helps your trading psychology to a greater extent.
Resources
You can use my excel template for free. Click here. Or learn about notion trading journal and download the template for free.
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