Trading Journal Example (Free) – Including Spreadsheet
This article provides you with a free downloadable trading journal example. A simple trading journal (or trading log) is a great tool for any aspiring trader. We recommend writing down all your trades in a database after each trading day.
This article describes what a trading journal is, why they are useful, how you create one, what to record in the journal, how often you should look at your trading journal, and finally, we provide a trading journal example for free.
Invest in preparedness, not in prediction.
Being prepared is one of the most important factors in succeeding whether you are an investor or a trader. Having a trading journal is an absolute must, but we are pretty confident in saying very few traders keep one. Thus, to succeed in short-term trading, which very much is a zero-sum game, you gain an advantage over your competitors just by having a trading journal!
First, let’s define what a trading journal is:
What is a trading journal?
A trading journal is a log (normally a spreadsheet or a software) that you use to record your trades. Let’s call it a database of all your trades. You can later reflect upon earlier trades and thus evaluate yourself. It’s a fantastic tool to create a good feedback loop – a prerequisite for successful trading. Feedback is the most important thing in improvement!
We regard a sample trading journal as one of the most important factors for becoming a successful trader. If you take trading seriously, you’ll find this an invaluable tool later on:
Why trading journals are useful – why use it
We have emphasized many times the importance of a trading journal, and we can assure you will find it handy and useful at a later time.
Perhaps the main reason why a trading log is useful is that it forces you to have a trading plan. It might force you to backtest what you are actually trading! Additionally, you need to share some thoughts on risk management, drawdowns, and trading psychology.