What is trading journal?
Definition
A trading journal is a record of every position's thesis, entry, stop, size, result and whether the plan was followed.
Memory keeps the wins and edits the losses. A journal keeps both, which makes it the raw material for improvement.
A useful entry records the thesis and levels before the trade, the result after, and one honest line on execution: did you follow the plan? Over time it produces the numbers, such as win rate and profit factor, that a review can work with.
Related terms
General education only. Not financial advice.