How to keep a trading journal: what to record, and how to review it
Most traders start a journal, fill it in for two weeks, and quietly stop. Not because journalling doesn't work, but because they record the wrong things and never review them. Here's how to keep a journal that pays for itself.
Why keep a trading journal?
Memory lies. After a month of trading, you'll remember the big win and the painful loss, not the twelve average trades in between that actually decide your results. A journal turns those trades into evidence. Within a few weeks it can answer the questions that matter:
- Which of my setups make money, and which lose it?
- Which session do I trade best?
- Do I make more when I follow my rules, or when I improvise?
- Am I cutting winners short or letting losers run?
What to record on every trade
| Field | Why it matters |
|---|---|
| Date, time and session | To find your best and worst trading hours |
| Market and direction | To spot markets or sides you trade badly |
| Setup name (from a fixed list) | The most important field: it lets you measure each setup separately |
| Entry, stop and target | To calculate planned risk to reward |
| Result in R (and money) | To compare trades fairly, whatever the size |
| Plan followed? Yes / no | Usually the most eye-opening field of all |
| Emotional state | To catch FOMO, revenge trading and tilt |
| Notes and a screenshot | So your weekly review has something to look at |
Two of these deserve extra care. The setup name must come from a fixed list: if one day it's “sweep” and the next “liquidity grab”, you can't group your results. And results in R only work if you risk a consistent amount each time (see how to calculate lot size and risk to reward explained).
When to fill it in
Log each trade as soon as it closes, while you still remember why you took it and how you felt. It should take about 30 seconds. If it takes longer, your journal has too many fields; cut back to the ones above.
The 30-minute weekly review
- Total R, win rate and average R for the week.
- Sort by setup: which made money, which lost?
- Filter to trades where you didn't follow your plan. What did they cost in total?
- Check results by session and day of the week.
- Write down one thing to change next week, and only one.
Five mistakes that make journals useless
- Only logging P&L. Profit and loss alone can't tell you why.
- Free-text setup names. They drift, and you can never group your results.
- Skipping the losing trades. The losers are where the lessons are.
- Never reviewing. A journal you don't read is just a diary.
- Too many fields. If logging is a chore, you'll stop.
Spreadsheet or dedicated journal?
A spreadsheet works if you'll build the reports yourself and keep them up to date. A dedicated journal does the maths for you, which makes it far easier to stick with. We compared the main options, including their prices and honest pros and cons, in the best trading journal for professional traders.
A journal built around your setups
The Trader’s Ledger comes with 25 written setups, logs every field above in about 30 seconds, and shows your win rate and R by setup and session. £19 once, with a free 49-page trading course.
Get The Trader’s LedgerFrequently asked questions
What should I write in a trading journal?
At minimum: date, time and session; market and direction; the setup name from a fixed list; entry, stop and target; the result in R; whether you followed your plan; your emotional state; and notes or a screenshot.
How often should I review my trading journal?
Briefly after each trade, and properly once a week for about 30 minutes.
Can I use Excel as a trading journal?
Yes, if you'll keep it updated and build the key reports, such as results by setup and by plan followed. Many traders find a dedicated journal easier to stick with.
How many trades do I need before my journal is useful?
You'll learn something within 10 to 20 trades, but judge any setup on at least 30, and ideally 100.
Educational content only, not financial advice. Trading carries a high level of risk and you can lose more than you expect. Examples use illustrative prices.