The Importance of the Trading journal

Updated: May 9

Hi There

In the next post i want to talk about one of the most important aspects in trading (maybe the most important) - Trading Journal.

Dr Alexander Elder used to say "Show me a good records and i will show you a good trader".

You can't be a good trader without tracking your performance.

As the legendary Dan Pena said - "WHAT GETS MEASURED GETS BETTER!".

You need do document each one of your trades in order to do back tests and ask yourself the following questions (There are more questions, I only mentioned some of them):

  • Find your Edge

  • Where you are wrong

  • What is your weakness,

  • What is your Strength,

  • What is your most profitable/loser strategy

  • What is your average hold time in a trade

  • What is your win rate

And much more.

Trading Journal will help you to save entry&exit graphs of each trade so you can learn from your past trades.

In a trading Journal you need to write description about every trade, believe me, it will help you a lot in the future, you will identify recurring mistakes and you will fix them shortly.

I know, it's a bit annoying to track each trade and It takes some time to maintain it

but unfortunately, there are no shortcuts, if you want to be a pro, you need to think and act like a pro, and that's what the pro do, maintains a detailed trading record.

You can build your free trading journal with Excel/google sheets or pay for professional trading journal platform.

There are plenty of online journals out there, in my next post i will write my recommendation about the trading journal i use so stay tuned!.


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