Exploring the Main Components of a Powerful Trading Journal

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In one of the previous posts, we discussed the significance of a trading journal. In the today's article, I will share with you the key elements of a trading journal of a professional trader.

And first, a quick reminder that a trading journal is essential for your trading success. No matter on which level you are at the moment, you should always keep track of your results.

Let's go through the list of the things that you should include in your journal.

1 - Trading Instrument

The symbol where the order is executed.
You need that in order to analyze the performance of trading a particular instrument.

2 - Date

The date of the opening of the position. Some traders also include the exact time of the execution.

3 - Risk

Percentage of the account balance at risk.
Even though some traders track the lot of sizes instead, I do believe that the percentage data is more important and may give more insights.

4 - Entry Reason

The set of conditions that were met to open the trade.

In that section, I recommend to note as much data as possible.
It will be applied in future for the identification of the weaknesses of your strategy.

5 - Risk Reward Ratio

The expected returns in relation to potential risks.

6 - Results

Gain or loss in percentage.

And again, some traders track the pip value of the gain, however,
in my view, the percentage points are more relevant for studying the statistics.

Here is the example of the trade on Gold:



Here is how exactly you should journal the following trade:

Instrumet: Gold (XAUUSD)
Date: 03.07.2023
Risk: 1%
Entry Reason: H&S Pattern Formation,
Neckline Breakout & Retest
R/R Ratio: 1.77
Results: +1.77%

Of course, depending on your trading strategy and your personal goals, some other elements can be added. However, the list that I propose is the absolute minimum that you should track.

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19 thg 3

Ghi chú

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