Trading Journal: First Step to Become a Professional Trader

Trading Log- Hardeep Narula

What is a Trading Journal a.k.a Trading Log?

A trading journal is a simple trading log to write down your trades.

This helps you evaluate your trades by allowing you to review them at the end of the day and week, identify your mistakes, and improve your trading strategies.

By keeping a trading journal, you can also identify your strengths and weaknesses, develop your trading psychology, increase consistency, improve accountability, and optimize your trading strategies.

It allows you to follow your trading plan, which is a set of rules and guidelines you follow to trade.

Moreover, a trading journal helps you manage emotions and work towards becoming a professional trader.

 Why Trading Journal is Important

Why Trading Journal is Important - Hardeep Narula

  1. Performance Analysis: It helps you to analyze how are you performing, and what’s working for you and what’s not.
  2. Identify Mistakes: It allows you to spot mistakes and improvise them.
  3. Creates Discipline: Makes you strictly stick to your trading plan.
  4. Emotional Control: It develops emotional stability and improves your trading psychology.
  5. Refined Entries: It refines your trading strategy based on past trades which helps you to take refined and high-probability trades.
  6. Accountability: This will increase your accountability and you’ll start honoring your trades and become highly professional (a pro trader, not a gambler).

What to Write in Trading Log

What to Write in Trading Journal - Hardeep Narula

  1. Date and Time of each trade
  2. Instrument/Stock Name (Eg: Tata Motors)
  3. Entry Price and Exit Price
  4. Position Size (Quantity)
  5. Stop Loss Price and Points
  6. Target Prices and Points
  7. How Much Profit or Loss (In Amount)
  8. How Much Profit or Loss (In Percentage)
  9. Risk-Reward Ratio (1:1, 1:2, 1:3 and so on..)
  10. Analysis and Logic Before Entry? Confluences?
  11. Total No. of Trades
  12. Notes: What went wrong? Profit or loss? If loss – Why? How did you feel during the trade? Were you fearful or anxious? Focus on Improving 1 aspect at a time.

How to Create Your Trading Log

How to Create Trading Log - Hardeep Narula

  1. Use a simple Excel sheet or notebook to do so.
  2. Label columns for each item to record.
  3. You can enter the data at the end of your day.
  4. Be consistent and detailed with the logging process.

FREE Trading Journal Template

FREE Trading Log Sample - Hardeep Narula

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