Trading journals are your go-to tool for improving your trading performance. It helps you track your financial goals, analyse your trades, and manage emotions that can lead to poor decisions. Many traders in Singapore use journals to stay disciplined, especially when working towards milestones like saving for an HDB flat or retirement.

Here’s why a trading journal matters:

• Track performance accurately: Human memory is unreliable. Over 70% of traders misremember trade details. A journal ensures you have a clear record of wins, losses, and patterns.
• Turn goals into measurable targets: Break vague objectives, like “improve profits”, into specific metrics like win rates or annual returns in SGD.
• Spot emotional triggers: Documenting emotions like FOMO or frustration helps you identify and fix bad trading habits.
• Stay consistent with strategy: Regular reviews of your journal help you refine your systematic trading approach and avoid impulsive decisions.

Key tools for journaling include spreadsheets, dedicated apps (like Tradervue), note-taking software, or even simple paper notebooks. Choose what matches your trading style.

Pro tip: Weekly reviews can improve win rates by up to 15%. Start simple – log your trades, emotions, and outcomes, and adjust based on your findings. A well-maintained journal can be the difference between consistent gains and costly mistakes.

What a Trading Journal Is

A trading journal is essentially a detailed record of every trade you make. It doesn’t just track profits and losses – it also includes technical details like entry and exit points, the reasoning behind your strategy, risk management settings, and even your emotional state during the trade . Think of it as a combination of a data log and a personal diary for your trading activity. This blend of numbers and personal reflections helps uncover patterns in your trading behaviour.

For traders in Singapore using MAS-regulated brokers, platforms like MetaTrader let you download custom “Account History” reports. These can be easily imported into your trading journal, making it simpler to review your performance systematically. The practice of maintaining a journal is a cornerstone of disciplined and structured trading, especially in fast-moving markets.

How Journals Turn Goals into Trackable Numbers

Financial goals like “improve profitability” or “minimise losses” are too vague to act on unless they’re broken down into specific, measurable figures. A trading journal does exactly that by tracking key metrics such as win rates, risk–reward ratios, and R-multiples (which measure profits or losses relative to your initial risk) . For instance, if your goal is to achieve a 6% annual return through dividend stocks, you can monitor progress by logging your returns in SGD.

More advanced metrics, like Maximum Adverse Excursion (MAE) and Maximum Favourable Excursion (MFE), provide insights into whether your stop-loss levels are too loose or if you’re exiting trades prematurely, potentially missing out on profits . Research shows that traders who review their journals weekly can see an average improvement of 15% in their win rates. By relying on measurable data rather than gut instincts, journaling allows for evidence-based decision-making . Once your targets are clear, picking the right journal format becomes the next step.

Different Types of Trading Journals

The best journal format for you depends on your trading style and the volume of trades you handle. Here’s a breakdown of the most common options:

• Spreadsheets: Tools like Excel or Google Sheets are ideal for traders who thrive on customisation. They’re free and allow you to create formula-driven metrics, but manual data entry can become tedious for high-volume traders .
• Dedicated Software: Platforms like Tradervue and Edgewonk are great for day traders managing large amounts of data. These apps offer automated trade imports through APIs, advanced analytics, and visual dashboards, saving time and providing in-depth insights .
  

  “Tradervue enables an unparalleled deep review of my active trading executions without a high data scrubbing overhead; it just works”.
  While these tools often require a subscription, many offer free basic versions.

• Note-Taking Tools: Apps like Notion or Evernote cater to traders who want to combine technical data with emotional tracking. These tools make it easy to integrate screenshots, annotated charts, and personal notes in one place .
• Paper Journals: For those who prefer a more reflective approach, writing by hand in a physical notebook can encourage deeper introspection.

Each option has its strengths, so the choice depends on what aligns best with your trading habits and goals.

What Makes a Trading Journal Work

Performance Numbers and Financial Tracking

A trading journal becomes truly useful when it captures the right metrics – entry and exit prices, trade size, net profit or loss in SGD – and calculates key figures like percentage returns and R-multiples to gauge risk-adjusted performance.

For example, if you risk S$100 on a trade and earn S$200, that’s a 2R trade. Tracking these numbers helps determine if your strategy consistently delivers an edge. Experienced traders often go further, monitoring MAE (Maximum Adverse Excursion) and MFE (Maximum Favourable Excursion). These metrics reveal whether stop-loss settings or premature exits are cutting into profits. If your average MAE-to-stop-loss ratio is below 0.4, your stop-losses might be too loose. Tightening them could allow you to increase position sizes without adding extra risk.

Singapore-specific costs also play a role. Don’t overlook clearing fees (0.0325%), SGX fees (0.0075%), and the 9% GST on commissions. Ignoring these can give you a misleading picture of profitability. Research even shows that traders who track their expenses outperform those who don’t by an average of 12% annually.

While these metrics provide a solid foundation, they work best when paired with strict risk management.

Risk Management and Loss Tracking

Your journal should also record risk per trade, stop-loss levels, and daily loss limits. Many traders cap their risk at 1–2% of their capital per trade or per day to protect their systematic trading strategy.

“I know where I’m getting out before I get in. Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep.” – Bruce Kovner, Legendary Trader

Documenting risk details helps you identify when you’re straying from your trading rules. For example, if you find a trade where you risked 5% of your capital instead of your planned 2%, that’s a warning sign. Clear stop-loss levels can significantly reduce losses – by as much as 50% – which is critical since 85% of day traders fail largely due to overtrading.

Numbers are crucial, but understanding your mindset can add another layer of insight to your trading approach.

Recording Emotions and Decision-Making

While metrics explain the “what”, tracking your emotions uncovers the “why.” Logging how you felt during a trade – whether it was FOMO, fear, frustration, or excitement – can help you spot patterns that lead to poor decisions.

For instance, one trader, Dave, discovered a habit of making impulsive FOMO trades after 2:00 PM, which often led to skipping stop-losses. Recognising this pattern helped him reduce unnecessary losses. Another trader, Jane, reviewed six months of logs and noticed that high emotional intensity often led to poor results. After incorporating pre-trade meditation, her win rate improved from 37% to 51%.

To get the most accurate insights, jot down your emotions right after each trade, as details fade quickly. Some traders even rate their discipline on a scale of 1 to 10 for each trade. This separates adherence to their process from the trade’s outcome. Additionally, noting external factors – like a bad night’s sleep or personal stress – can guide you to establish rules, such as avoiding trades during challenging periods. Interestingly, 92% of consistently profitable traders keep detailed logs, showing just how impactful this practice can be.

Using Your Journal to Track Goals

Connecting Journal Data to Financial Goals

Your journal can turn your financial goals into clear, measurable targets. For example, if your long-term aim is to save S$500,000 for retirement over 15 years, break it down into smaller steps – S$33,333 annually or a monthly target. This calculation helps you assess whether your current strategy can realistically achieve your desired financial outcome.

To stay on track, focus on key metrics that align with your goals: win rate, profit factor, and Sharpe ratio. For instance, if your profit factor over three months is just 1.2, it might be time to refine your exit strategies or tighten stop-losses to meet that annual target of S$33,333. Tracking your R-multiples is another way to measure consistency, regardless of your account size.

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.” – Benjamin Graham

Also, monitor your rule-following efficiency, with a goal of 95% or higher adherence to your trading plan. If your losses are consistently linked to tags like “hesitation” or “FOMO”, it’s a sign to focus on mindset training rather than tweaking your strategy. Research shows that around 90% of traders lose money due to emotional decisions, not a lack of technical skills.

To make these metrics useful, incorporate regular reviews into your routine to drive continuous improvement.

Setting Up Regular Review Schedules

Consistent reviews are essential for turning journal data into actionable insights. The frequency of your reviews should match your trading style. Day traders benefit from daily reviews to catch execution errors while trades are still fresh. Swing traders might prefer weekly reviews to spot patterns and refine watchlists. Long-term investors can stick to monthly reviews to evaluate portfolio growth and ensure alignment with their broader financial goals.

A simple three-step weekly review can be highly effective: reflect on what worked, what didn’t, and identify one area to focus on for the upcoming week. For instance, if your journal shows that trades made after 2:00 PM consistently underperform, you might decide to stop trading after lunch.

For deeper insights, create a tiered review schedule. Use weekly reviews for short-term adjustments, monthly reviews to track budget milestones and calculate profits and losses, and quarterly evaluations to adjust strategies based on market conditions. Major life changes such as job transitions, family growth, or nearing retirement should also prompt a reassessment of your goals and risk tolerance.

Combining Journals with Systematic Trading Education

Your journal becomes even more powerful when combined with systematic trading education. It serves as a tool to validate and refine the strategies taught through programmes like the Collin Seow Trading Academy’s Systematic Trader Programme. This programme focuses on eliminating emotional biases vs. systematic trading by emphasising data-driven decision-making, and your journal plays a key role in reinforcing these principles.

For example, if the programme recommends risking only 1–2% of your capital per trade, your journal should confirm that you’re sticking to this rule. If you notice a trade where you risked 5%, that’s a clear signal to revisit your approach. Using visual aids, like screenshots of your trade entries and exits, can further help you verify whether a setup met the predefined criteria. After all, our memories can be unreliable.

Solving Common Journaling Problems

Journaling is a powerful tool for traders, but practical challenges can often get in the way, making it hard to stay consistent. Let’s tackle some of the most common problems and how to address them effectively.

Managing Time and Effort

One of the biggest complaints traders have about journaling is that it feels like a time sink. In fact, research shows that over half of new traders quit journaling within their first three months. The trick? Keep it simple. Treat your journal like a quick bullet-point log. Focus on capturing the essentials – like your entry, exit, profit or loss (P&L in S$), and your emotions – right after each trade. If markets are moving too fast, prioritise documenting the big moments, such as trades that went exceptionally well or ones that triggered strong emotions.

Automation can also be a lifesaver. Tools like Tradervue (starting at S$29/month for the Silver plan) or TraderSync (from S$29.95/month for the Pro plan) can automatically pull trade data from your broker, cutting down on manual input. Even a basic Excel spreadsheet with formulas to calculate your win rate and risk/reward ratio can make a big difference. To make your journaling truly effective, set aside regular time to review your notes and turn them into actionable insights.

Once your process is streamlined, it’s time to address the emotional challenges that often hold traders back.

Dealing with Emotional Resistance After Losses

Losses can be tough to face, and it’s tempting to avoid your journal after a bad day. But avoiding it only makes things worse. Instead, shift your mindset from blaming yourself to learning from the experience. Writing down your losses can actually help take the emotional edge off.

Balance is key here – don’t just focus on what went wrong. Include what you did well, even in losing trades. For example, if you stuck to your stop-loss or followed your trading plan despite poor timing, make a note of that. Trading psychologist Brett Steenbarger explains:

“Too much negativity in your journal entries can be damaging to your trading confidence in the long run so it’d help to balance it out with some positive thoughts on your trading”.

Think of every journal entry as a chance to learn, not just a record of mistakes. This balanced approach helps keep your journal a constructive tool rather than a source of frustration. It’s worth noting that 92% of consistently profitable traders maintain a detailed journal.

Keeping Your Data Simple

Another common mistake is trying to track too much. Overloading your journal with excessive data fields can make it overwhelming and, ultimately, unsustainable. Start small – stick to just two or three core columns, like the date, ticker, P&L in S$, and maybe an emotional tag. After a month, if you find certain fields aren’t useful, drop them. Your journal should focus on metrics that truly impact your trading goals, like your win rate or profit factor, rather than drowning in unnecessary details.

For better organisation, use dropdown menus or tags for trade setups, like “breakout” or “pullback”, so you can easily filter your data without manual sorting. If spreadsheets feel too dry, consider adding screenshots of your trades to provide visual context. The ultimate goal is to create a system that’s simple and sustainable. A straightforward journal that you use consistently will always be more effective than an overcomplicated one you abandon. By keeping your data focused, you’ll gain valuable insights to fine-tune your trading strategy.

Conclusion

By combining metric tracking with emotional awareness, your trading journal becomes an essential tool for steady progress. It serves as a bridge between where you are now and where you want to be financially, helping to align your trading habits with your goals. Interestingly, 92% of consistently profitable traders keep a journal, while over 80% of retail forex and CFD traders lose money – often because they skip this crucial step.

A trading journal isn’t just a record; it’s a way to elevate your trading from guesswork to a structured, accountable process. It ensures you stick to your own rules – like stop-losses, risk limits, and your trading plan. As Bruce Kovner, a legendary trader, famously said:

“I know where I’m getting out before I get in. Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep.”

Your journal does more than track numbers; it captures your emotions too. Documenting feelings like FOMO or frustration can reveal patterns that disrupt your discipline, giving you the insight needed to correct them.

Getting started doesn’t have to be complicated. Begin by logging your trades right after they happen, review them weekly, and focus on key metrics like your win rate and risk-reward ratio. Whether your goal is to generate a side income or become a full-time trader, a journal transforms vague aspirations into measurable, achievable milestones.

When paired with systematic trading education, journaling refines your strategy and sharpens your skills. For more guidance on building structured trading strategies and incorporating journaling into your routine, visit Collin Seow Trading Academy. There’s no better time to start than now.

FAQs

How does using a trading journal help me achieve better trading results?

A trading journal is an essential tool for keeping track of your trades and fine-tuning your strategy. By documenting critical details like entry and exit prices, position sizes, stop-loss and take-profit levels, along with metrics such as maximum adverse excursion (MAE) and maximum favourable excursion (MFE), you can uncover patterns that might otherwise go unnoticed. For example, if you consistently see high MAE values before a loss, it could be a sign that your stop-loss settings are too restrictive.

But it’s not just about the numbers. A trading journal also gives you the space to reflect on the emotional side of trading. Recording moments when fear or greed impacted your decisions can help you develop the discipline to stick to a structured plan. Over time, reviewing your journal allows you to identify your most successful setups, weed out strategies that don’t perform well, and improve your risk management practices. The result? More consistent and confident trading.

What important metrics should you track in a trading journal?

Tracking the right metrics in your trading journal is a game-changer when it comes to improving your performance and hitting your financial targets. Some of the key numbers to keep an eye on include your win rate, profit/loss, maximum drawdown, risk-reward ratio, and trade duration. Alongside these, make sure to record details like entry and exit prices, position size, date and time, and the specific asset you traded.

Don’t overlook the importance of capturing your emotional state and the reasoning behind each trade. These insights can help you spot patterns in your decision-making process. By diving into these metrics regularly, you’ll be able to fine-tune your strategies and make smarter trading choices over time.

How can I choose the best trading journal for my trading style?

Selecting the right trading journal boils down to your trading style and what works best for you. For day traders, who are in and out of multiple trades daily, a digital tool like a spreadsheet or app is often the way to go. These tools can track timestamps (formatted as dd/MM/yyyy HH:mm), calculate key metrics like win rate, MAE/MFE, and profit-and-loss figures in Singapore dollars (e.g., S$12,345.67), making the process both faster and more accurate. On the other hand, swing traders or position traders, who hold trades for longer periods – days or even weeks – might find a mix of tools more effective. A notebook is great for jotting down qualitative insights like market sentiment or notable economic events, while a simple spreadsheet can help keep track of performance metrics.

If you’re just starting out, a fully manual notebook can be an excellent way to build discipline and track your emotions during trades. Once you’re comfortable, transitioning to a digital system might streamline your process.

Your trading approach also shapes what your journal should include. Technical traders will benefit from logging details like entry patterns, indicator settings, and stop-loss levels. Meanwhile, fundamental traders might focus on tracking economic data, company earnings dates, and valuation ratios. For those looking for guidance, Collin Seow Trading Academy offers free templates and resources to help you design a journal that aligns with your systematic trading strategy.

By aligning your journal with your trade frequency, analysis style, and preferred workflow, you’ll not only stay organised but also build the discipline needed to support your trading goals.