What is a trading journal?
A trading journal is a record of every trade — instrument, entry, exit, size, result — together with the reasoning and the state behind it. Its purpose is review: finding which setups, times and behaviours make or lose money, so the plan changes on evidence rather than memory.
Key points
- Records the trade and the decision behind it.
- Useful only if it is reviewed regularly.
- Works best together with a checklist that runs before the trade.
What to record
- The trade: instrument, direction, entry, exit, size, result in money and in R.
- The decision: setup, whether the plan was followed, the checklist answers.
- The trader: readiness, emotional state, a one-line note.
- Context: a screenshot, tags, a self-rating.
Journal vs pre-trade checklist
A journal works after the trade: it shows the damage and the pattern, usually in the evening. A pre-trade checklist works before it, when a bad trade can still be skipped. Many journals analyse the strategy; storing the checklist answers with each trade lets the journal analyse the trader too.
Manual entry vs broker import
Journals that import trades from a broker save typing but record only what the broker knows. Entering the result by hand takes a minute and keeps the decision attached to the trade. StatWidget works this way: the checklist creates the trade, and the result is added after the exit.
Example
A month reviewed by checklist score: 31 trades scored 8–10 made +9.5R, 12 trades scored 1–6 lost 7R. The plan didn’t need a new setup — it needed to skip the low-score entries.
Numbers are illustrative.
Questions
Do I need a journal if I use a checklist?
Yes — they do different jobs. The checklist prevents some bad trades; the journal shows which ones still got through and what they cost.
How often should I review it?
Weekly works for most active traders: enough trades to see a pattern while the week is still fresh in memory.