# Trading Journal > A trading journal records every trade so you can find what works and what keeps costing you. Learn what to log, a template and how to review it. Source: https://learn.tradelabsai.com/start-here/trading-journal/ Track: Start Here · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Trading Journal", https://learn.tradelabsai.com/start-here/trading-journal/ A trading journal is a record of every trade you take: what you did, why you did it, what happened and how you felt. It is the single most useful tool for getting better, because it turns vague impressions ("I think breakouts work for me") into evidence ("my breakout trades lose money unless volume is above average"). Without one, you repeat the same mistakes and cannot tell skill from luck. ## What to record for every trade Some fields are facts, some are reasons and some are feelings. All three matter. | Field | Example | |---|---| | Date and time | 2026-03-14, 10:42 | | Market and direction | AAPL, long | | Setup | Pullback to 20 day average in uptrend | | Entry, stop, target | $182.10, $178.90, $190.10 | | Position size and risk | 60 shares, $192 risk (0.96%) | | Exit price and reason | $186.40, trailed stop hit | | Result | +$258, +1.34R | | Followed plan? | Yes | | Emotions before and after | Calm before; wanted to exit early at +$100 | | Screenshot | Chart at entry and at exit | | Lesson | Held through the pullback by sticking to the trailing rule | The **R multiple** is the result divided by the amount risked. A trade that risks $192 and makes $258 is +1.34R. Measuring in R lets you compare trades of different sizes and markets. ## Why the "why" and "how I felt" matter Prices and results can be downloaded from your broker. What cannot be downloaded is your reasoning and state of mind. Patterns often hide there: losses that cluster after a big win, trades taken out of boredom, exits made because of fear rather than the plan. Read [Mental State Tracking](https://learn.tradelabsai.com/psychology/mental-state-tracking/) for a simple scoring method. ## Measuring performance from your journal With enough trades logged, you can calculate the numbers that actually describe your trading: - **Win rate:** winning trades divided by all trades. - **Average win and average loss**, ideally in R. - **[Expectancy](https://learn.tradelabsai.com/risk/expectancy/):** the average result per trade. - **[Profit Factor](https://learn.tradelabsai.com/portfolio/profit-factor/):** gross profits divided by gross losses. - **Largest losing streak and [Maximum Drawdown](https://learn.tradelabsai.com/portfolio/maximum-drawdown/).** **Example: From journal to insight** After 60 trades, a trader's overall expectancy is +0.12R. Filtering by setup shows pullback trades at +0.41R and breakout trades at minus 0.22R. Filtering by time shows that trades taken in the first 15 minutes of the session average minus 0.35R. Dropping breakouts and the first 15 minutes would have raised expectancy substantially. Without the journal, none of this would be visible. ## Tools for keeping a journal - **A spreadsheet** is free, flexible and enough for most traders. - **A dedicated journal app** can import trades from your broker and calculate statistics automatically. - **A notebook** works for reasons and emotions, combined with broker statements for numbers. The best tool is the one you will use after every trade. Consistency beats sophistication. ## How to review your journal Logging is only half the job. Set a regular review: 1. **After each trade:** fill in every field the same day, while you still remember why. 2. **Weekly:** read every trade, mark rule breaks and note the most expensive mistake. 3. **Monthly:** calculate your statistics by setup, market and time of day. Decide one change for next month. The detailed method is in [Post-Trade Analysis](https://learn.tradelabsai.com/start-here/post-trade-analysis/) and [Trading Routine and Reviews](https://learn.tradelabsai.com/start-here/trading-routine-and-reviews/). **Tip: Log the trades you did not take** Record valid setups you skipped and why. If skipped trades would have performed well, hesitation may be costing more than losses. ## Common mistakes - **Only logging winners**, or skipping entries after bad days, which hides the most important information. - **Logging results but not reasons**, so you cannot tell good decisions from lucky ones. - **Never reviewing**, which turns the journal into a diary instead of a tool. - **Drawing conclusions from too few trades.** Ten trades say little; fifty start to say something. ## Frequently asked questions ### What is the best way to keep a trading journal? The simplest system you will use consistently, usually a spreadsheet with entry, exit, size, risk, result in R, setup, whether you followed your plan, emotions and a screenshot. ### How many trades do I need before reviewing results? Review every week for mistakes, but wait for at least 30 to 50 trades of a setup before judging whether it works. ### Should I journal paper trades too? Yes. Journaling paper trades builds the habit and gives you data to decide whether you are ready for live trading. Next, learn how to review each trade properly in [Post-Trade Analysis](https://learn.tradelabsai.com/start-here/post-trade-analysis/). ## Continue learning - Next lesson: [Pre-Trade Checklist](https://learn.tradelabsai.com/start-here/pre-trade-checklist/) - Previous lesson: [Building a Trading Plan](https://learn.tradelabsai.com/start-here/building-a-trading-plan/) - Related: [Building a Trading Plan](https://learn.tradelabsai.com/start-here/building-a-trading-plan/): A trading plan is your written rules for what, when and how much to trade. Learn the parts of a good plan, see a complete example and build your own. - Related: [Post-Trade Analysis](https://learn.tradelabsai.com/start-here/post-trade-analysis/): Post-trade analysis turns every trade into a lesson. Learn how to grade decisions separately from results, find repeat mistakes and improve your plan. - Related: [Trading Routine and Reviews](https://learn.tradelabsai.com/start-here/trading-routine-and-reviews/): A trading routine keeps decisions consistent. See a sample daily routine plus weekly and monthly review steps that turn your journal into better results. - Related: [Expectancy](https://learn.tradelabsai.com/risk/expectancy/): Expectancy is the average amount you win or lose per trade. Learn the formula, how win rate and payoff combine, expectancy in R and how to improve it. - Related: [MAE and MFE](https://learn.tradelabsai.com/risk/mae-and-mfe/): Maximum adverse excursion and maximum favourable excursion show how far trades move for and against you. Learn to record them and use them to tune stops and targets.