Trading glossary
A trading journal is a record of trades and the reasoning behind them, used to review decisions over time. Learn what to log and why it helps learning.
A trading journal is a structured log where a trader records each position along with the reasoning behind it. Entries often include the instrument, entry and exit, position size, and the rationale at the time. The purpose is reflection: by writing decisions down, a trader can review them later with more objectivity than memory alone allows.
Useful journals capture both numbers and context. Beyond prices and dates, many traders note the setup, the risk-reward ratio they expected, their emotional state, and whether they followed their own rules. Over time this record can reveal recurring habits, such as exiting too early or ignoring a stop-loss, that are hard to notice trade by trade.
A journal turns scattered trades into reviewable data, helping a trader separate process from outcome. A well-reasoned decision can still lose, and a careless one can still win, so reviewing the process matters more than any single result. A journal is a personal learning tool, not financial advice, and keeping one does not remove the risk of loss of capital.
Common fields include the instrument, entry and exit, position size, planned risk-reward, the reason for the trade, and notes on your mindset and whether you followed your rules.
A journal helps you review decisions objectively and spot recurring patterns in your behavior over time. It focuses attention on process rather than single outcomes, which supports learning.