In simple words, a Trading Journal is a performance management tool.Trading Journal Definition
The entire purpose of using a trading journal is to view and evaluate your own trading statistics. How can you track your progress as a day trader? You need a tracking and evaluation system. A good rule of thumb is to evaluate your trade statistics after every 90 trades. If your trading strategy needs more accuracy, work on improving it.
Accuracy of trading strategies can be improved by adding more constraints to make a trading decision, like adding one or two more indicators to an existing day trading strategy.
How and where to get a trading Journal
In the below image, you can see how our trading journal looks.
Download the Stockwizaards free trading journal template
Simply keep a track record of all your trades by logging all your trades regularly into your trading journal. Slowly you will start feeling how useful it is to log your trades. After every cycle of 90 trades, evaluate your trade statistics and look for further ways to improve your trading.
Once you know how keeping track of your trades improves your overall day trading performance, you can start creating your own trading journal template. The entire purpose of the trading journal will remain the same but you can definitely change the fields you need to keep track of inside the trading journal template.
The above-discussed trading journal facts can really make a difference in your trading performance. But the real key of day trading success is a professional approach. The use of a trading journal helps in keeping up the professional approach momentum. So use a trading journal as much as possible and become a better day trader.