Trade journal
A trade journal is a sheet or notes where you record every trade (entry, exit, stop, size, reason and result) so you can see which mistakes you repeat.
How it works
After each trade you log the date, instrument, direction, entry and exit price, stop and target, position size, and the result in money and in R (how many units of risk you won or lost). Add the reason for entry, a chart screenshot and how you felt.
Once a week or month you run the stats: win rate, average win and loss, which setups and hours work best. Memory fails and remembers the dramatic trades; records show what really happened.
A journal is useful on demo and on a live account. Without it you cannot tell whether a strategy works or you just got lucky over a short run.
The journal shows that most losing trades were opened without a planned stop and right after a winning streak. Now you know what to fix.
In a month: 40 trades, 45% winners, average win 2R, average loss 1R. Expectancy per trade is 0.45 × 2 − 0.55 × 1 = 0.35R. Even with fewer than half the trades winning, the system is profitable.
The most common mistake is logging only winners, or dropping the journal after a losing streak. Losing trades teach the most. Record everything, including the "why I entered" and "how I felt" fields, and review it on a schedule, not when you feel like it.
Questions and answers
What is a trade journal in simple terms?
It is a log where you record every trade and why you took it. It shows what works and which mistakes you keep repeating.
What should I write in a trade journal?
At minimum: date, instrument, entry, stop, target, exit, position size, result and reason for the trade. A screenshot and your emotions are useful extras.
Where should I keep a trade journal?
A simple spreadsheet or notebook is enough. The tool matters less than the habit of logging each trade right after you close it.
Related terms
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Updated: 2026-10-19