Thread by @ProdigalTrader

Components of a focussed trading journal

A trading journal isnt just about recording basic trade details
Its a live market forward test report as well.
For that u need to assess & analyse various facets in trading separately

Here are the components of trading journal

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1. Trade-specific details

The entry, SL, exit price/time,
Traded instrument,
Trade direction,
The result of the trade etc.

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2. Analysis

logic behind the entry, SL and target levels.
Potential reasons for why trade might not work
Review of the same after trade completed.
Notes on scope of improvements etc.

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3. Risk management part

Position size,
Risk reward (both aimed and achieved),
Scaling in/out price, quantity and time,
Highest risk amount at any given time in a trade etc.

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4. Perfomance efficeincy

Achieved RR,
Highest price in trade to booked price level ratio,
Slippage in entry/SL/target,
Variation in entry/target prices with first to final lot traded,
Strike rate,
Profit to charges ratio,
Profit % from scaling in etc.

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5. Events & its impact

Earning anoucement,
Rbi policy declarations,
Political events or press conferences by influencial ministers,
Foreign markets events or its impacts etc.

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6. Time component

Average time required to complete target,
Time stop in a trade,
Time delay in hitting target after scaling in (useful to Measure momentum after scaling in etc.

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7. Market conditions

Volatility,
Trend type such as bullish.bearish ranging etc,
Changes in market sentimetns during the day,
Trend strength during the day and at the close,
Derivative data analysis of index serivatives,
FII/DII positions on market etc.

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8. Live market Changes

Why skippped a trade even if all conditions were met,
Why exited earler than planned,
Why SL changed during trade
Why scaled in lesser/higher quantity
Why exited in parts/at once deviatng from plan etc.
along with its review after trade completed

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9. Chart analysis

Chart set up,
Live chart with complete trade location details and live analysis
Chart after trade completion with complete trade details

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These are the 9 facets u should keep a log in ur trading journal
A well maintained trading journal of >3 months is a gold mine.
it contains all the informations u would ideally need to assess u as a trader and also the whole trading process

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u should include all the parameters u look for while backtesting, in ur trading journal as well
its validation of ur trading method by itself

Also, those who are incapable of backtesting mechancially,
can emulate it by kpping the journal for their trading this way as well

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