TRADING / PRACTICAL GUIDE
Trading Journal: Improve Your Decisions
Record plans, executions, context and rule adherence so your review produces usable evidence.
The short answer: A trading journal links the plan made before a trade to the execution and review afterward. The most useful journals capture decisions and context, not only profit and loss.
Record the plan first
Capture the setup, entry condition, invalidation, target or exit rule, size and expected risk before the order. A pre-trade timestamp protects the record from hindsight.
Separate outcome from quality
A good decision can lose and a poor decision can win. Score rule adherence separately from profit and loss so a lucky result does not teach the wrong lesson.
Use screenshots carefully
Mark the chart as it looked at the decision time, then add an after image. Avoid polishing the chart until every trade looks obvious.
Review in batches
After a fixed sample, group trades by setup, time, market condition and mistake. Change one rule at a time and document the date of the change.
Put it into practice
Try this: Review twenty past decisions and label the setup, market condition, rule adherence and outcome. Change only one rule based on the review.
Sources and further reading
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Educational purpose: This guide provides general education. It does not provide personalised financial, investment, legal or tax advice.