A trading journal is a document where traders record everything they do during a trading session. This includes strategy, risk management, psychology, and more. Many traders rely on their journal as a “trading roadmap” to help determine the path to reach their trading goals.
Watch this 2-minute video to learn more about keeping a trading journal.
Benefits of Keeping a Trading Journal
– Track Trade Details – Keep a daily trading journal to keep track of the details of your trading experience. It helps to put a focus on post-trade analysis.
– Use Pen & Paper – Use pen and paper when creating your trade journal. Your brain processes information differently when you write things down thus improving understanding and memory retention.
– Track Time – Keep track of the time of day you open and closed your positions. Are you a better trader in the morning or later in the day?
– Review Often – Review your trading journal and see if you can identify your strengths and common mistakes. Reviewing often can also help you avoid repeating mistakes.
– Write Down Observations – Make sure to write down trading observations. For example “was my stop too tight?” or “my pre-open counter trend didn’t work again” can help you refine your strategy.
– Don’t Deviate From Your Plan – Did you deviate from your initial trading plan by moving a stop or profit target mid-stream? If so, why?
There are many great reasons to keep a trading journal and we just covered a few. If you aren’t currently keeping a trading journal, try it out! NinjaTrader even has built-in journal capabilities where traders can simultaneously journal while trading and conducting market analysis.
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