Every successful trader journals their trades.

So, do you?

Journaling your trades not only means calculating your profit and loss, but it also means helping you review your performance on each currency pair, your risk/reward system, and how disciplined you are in following your trading strategy.

However, the trading journal is also one of the most underrated tools in the world of trading.

Because most traders enjoy the act of trading, the spike in adrenaline when you gamble.

When it comes to the tedious work of keeping a journal? People hate it.

That’s why you lose money. Because you don’t have the required patience and discipline.

You don’t even want to spend your little time updating your trading records, so why would you expect yourself to outperform the traders who analyze and review their trades day in and day out?

But don’t you worry. We got you!

We prepared you a ready-made a trading journal template, that not only includes the trading record table, but also a comprehensive dashboard and position size calculator that is fully automated with formulas.

But before you download the journal book and start recording your trades, there is something that you should know first to fully utilize its power, so it helps you stay profitable in the long term.

What is a trading journal?

A trading journal is a way to track your trading performance by recording your trades, which you can later review to improve your trading activity by learning from both your successful and not-so-successful trades.

Not only do you record the Profit and Loss (PNL) on each trade, but you also record your trading pair, entry and exit price, your risk/reward ratio, stop loss and take profit points, your reasoning and strategy, etc.

Tracking your progress allows you to study mistakes that you have made when opening or closing a position. It also helps you stick to your trading plan and enhance your ability to make better executions in the future through constant reinforcement learning.

Some traders also write down their thoughts, emotions, and observations during their post-trading analysis. It is important to take note of important observations as soon as possible, as some of them might get lost during a hectic trading day.

Trading journal is more than logging your trades

If you’re a beginner trader, it helps you find the right trading style. For example, you tried day trading, but your journal clearly shows that you are often stressed out and fail to manage the risk correctly, perhaps you are more of a swing trader.

If you are consistent with your journal, certain patterns should emerge over time. You should be able to identify your key strengths and weaknesses, which will help in finding better risk management techniques and a trading style that fits your personality.

However, the best thing it could offer is that it trains your discipline and emotion control. Keeping a trading journal is a tedious task, as you are required to review trades after a long trading day, which is not something people love doing.

If you stick to the habit every day, and put in your own insights and observations on each trade, your trading journal would be a great representation of your thoughts that you could analyze later on.

As you learn and review more about yourself, you might start to notice areas where you have the wrong mindset. Then you adjusting your risk levels to have a better chance of finding success and prolonging your capital.

Essential Components of a Forex Trading Journal

Trade Details:

The date, time, currency pair, entry and exit prices, lot size, and profit/loss for each trade.

Technical Indicators:

Technical indicators used for trade entry and exit decisions, such as moving averages, RSI, or MACD.

Market Conditions:

Briefly describe the prevailing market conditions, including news events, economic indicators, and overall market sentiment.

Trading Rationale:

Explain the rationale behind each trade, outlining the factors that influenced your entry and exit decisions.

Emotional Assessment:

Evaluate your emotional state during each trade, noting any feelings of fear, greed, or overconfidence that may have impacted your decisions.

Start Journaling Your Forex Trades

To your convenience, we have tailor-made a trading journal for you.

Step 1: Click the link below to receive the link to our trading journal. Then, start by making a copy of the journal book.

Get Free Forex Trading Journal Excel Template

Step 2: There is a sheet for recording all your capital inflow and outflow from the account to indicate your account size.

Step 3: Start by inputting the capital that you have in your broker account.

Step 4: Then, go to the trading record page and start recording the details of your trades there.

Step 5: After each trade, you will see your results updated on the trading dashboard on the first page.

Step 6: At the end of each month, you can record your balance and profit and loss values into the chart data sheet.

Then the chart will be automatically updated to show your monthly performance.

That’s how you manage your trading journal book.

Bottom line

Having a trading journal should be one of the first steps traders implement when learning to trade. A journal is very important in testing different strategies and finding which trading plans work for individual traders.

By meticulously documenting your trades, you gain a deeper understanding of their strengths, weaknesses, and emotions, ultimately leading to improved trading performance and consistent profitability.

Start journaling today and see the difference.

About TradeDots

TradeDots is a TradingView indicator that identifies market reversal patterns through the implementation of quantitative trading algorithm on price actions. Try our 7-day FREE Trial to level up your trading game.

Set up your personalized trading alerts using our Telegram Bot, so you can now trade effortlessly without gluing to your screen. Join us now to experience TradeDots across all trading assets!

—

Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading involves risk, and it is important to conduct thorough research and seek professional guidance before making any investment decisions. Prospective investors are encouraged to perform their own due diligence or consult a financial advisor before making investment decisions.