Why keep a trading journal
Memory is kind to winners and quiet about losers. A journal shows the real numbers: which setups pay, which symbols cost you, and whether breaking your plan is the problem. Most traders find one or two habits that account for most of their losses within a few weeks of logging every trade.
What to log for each trade
- Result: the net profit or loss after fees.
- Risk: what you would have lost at the stop. It turns results into R multiples so sizes compare fairly.
- Setup: a short, consistent name such as “Order block retest”. The breakdown groups by it.
- Plan: did you follow your rules? The journal compares the two groups for you.
- Notes: one line on why you took it and what you would change.
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Reading your numbers
- Win rate and average R together tell you more than either alone: 40% wins at +2R beats 60% wins at +0.5R.
- Profit factor above 1 means the strategy makes money; below 1, it loses.
- Max drawdown is the deepest fall from a high in your results. Compare it with your prop firm's allowance using the trailing drawdown calculator.
- Once you trust your win rate and reward:risk, test them with the challenge calculator.
Want a second opinion before you take the trade? Upload the chart for a free AI analysis.