Trade Journal
A systematic record of every trade including entry, exit, size, reasoning, and outcome — the primary tool for improving a trading edge.
A trade journal documents each trade in enough detail to enable honest post-analysis. A complete entry includes: setup type, timeframe, entry price, stop-loss, target, position size, the reasoning behind the trade, and what actually happened — including emotional state.
The journal is where improvement happens. Patterns invisible in the heat of trading — sizing up on bad setups, skipping great setups, revenge trading — become unmistakable in aggregate data. Traders without journals are optimising blindly.
Related Terms
Equity Curve
A chart plotting account balance over time across all trades, showing the overall trajectory and drawdown periods of a trading strategy.
BeginnerExpectancy
The average dollar amount you expect to make per dollar risked, calculated from your win rate and average win/loss sizes.
IntermediateMaximum Adverse Excursion (MAE)
The furthest a trade moves against you before it either recovers and wins or hits the stop-loss.
AdvancedMaximum Favorable Excursion (MFE)
The furthest a trade moves in your favour before it either closes at the target or reverses into a loss.
AdvancedProfit Factor
Gross winning trades divided by gross losing trades. A profit factor above 1.5 indicates a reliable positive edge.
BeginnerR-Multiple
A trade's result expressed as a multiple of initial risk. A trade that earns 2× the amount risked is a +2R winner.
IntermediateWin Rate
The percentage of trades that close at a profit. High win rate does not guarantee profitability without a favourable risk-reward ratio.
Beginner