Keeping a trading journal is a great way to focus in on your strengths, identify your weaknesses and ensure that no matter what happens in your trade, win or lose, you walk away with a win. As the saying goes, in your trades you always win — either pips or experience.
What is a trading journal and what should you track within it?
A trading journal is your guiding light once you start trading and is a great practice for any trader, from novice to professional. It’s a place to house your logic for your trades.
Immediately after you place a trade, note why you chose to enter that trade. Explain why you determined that particular exit. What attracted you to that trade? What points of proof pushed you to execute that trade? What did the technical analysis say?
Once the trade is complete, go back to this page in the journal. Did everything pan out or is there room for improvement? At this point, in the post-trade phase, it’s easier to identify what might have went wrong and how to avoid that same mistake again. You can also identify patterns of what you did correctly over time when referring to journal entries about winning trades