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.
Other things that are useful with a trading journal:
- You get statistics of your win ratio and consistency. Do you have a positive expectancy?
- You can compare backtests to live trading (to find out slippage)
- It keeps you accountable
- You can find patterns in your habits you were unaware of
- You can find which strategies you perform the best at
- You create a feedback loop
- Get ideas for trading edges (what is a trading edge?)
The last point is often overlooked. A