How do you keep a technical analysis journal?

Technical analysis is a method of studying the price movements and patterns of stocks, currencies, commodities, and other financial assets. It can help you identify trends, support and resistance levels, trading signals, and entry and exit points. But how do you keep track of your technical analysis and learn from your successes and failures? One way is to keep a technical analysis journal, where you record your observations, hypotheses, strategies, trades, and outcomes. In this article, we will show you how to create and maintain a technical analysis journal that can improve your skills and performance.

1 Benefits of a journal

A technical analysis journal is more than just a log of your trades; it's a tool for self-reflection, evaluation, and improvement. By keeping a journal, you can document your thought process and reasoning behind each trade, including technical indicators, chart patterns, risk-reward ratio, and market sentiment. This will help you review your results and performance over time and identify any strengths, weaknesses, patterns or biases that affect your trading decisions. Additionally, a journal can help you learn from your mistakes and successes in order to adjust strategies and techniques accordingly. Furthermore, you can track progress and goals to measure how well you are following your trading plan and discipline. Ultimately, this will help develop your confidence and consistency as a technical analyst and trader.

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Paul Eder, PhD

I Lead You to New Insights | Strategy Consulting, Artificial Intelligence, & Data Innovation | Author of FIRESTARTERS
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A journal like this does not have to be an individual phenomenon. A group of like-minded partners can keep a joint journal. This will allow for easy collection and sharing of collective ideas and successes.

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2 How to create a journal

When creating a technical analysis journal, there is no one-size-fits-all format to follow. You can use a spreadsheet, a word processor, a notebook, or a specialized software or app. However, there are some essential elements that you should include. For example, the date and time of the trade, the asset and market you are trading in, the entry and exit prices, and the amount and direction of the trade (long or short). Additionally, you should note the technical analysis tools and methods used, such as trend lines, moving averages, oscillators, candlestick patterns, etc. You can also include screenshots or charts to illustrate your analysis. Furthermore, you should document your trade rationale and hypothesis, expected outcome and target price, risk management and money management rules followed, trade outcome and performance, and trade evaluation and feedback. Finally, you can rate your trade on a scale of 1 to 10 based on how well you followed your plan and analysis.

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3 How to maintain a journal

Creating and maintaining a journal is essential for successful trading. You should update your journal every time you make a trade or at least once a day, to ensure you don't miss out on important details. Additionally, it's beneficial to review your journal periodically, such as weekly, monthly, or quarterly. This will help you spot any patterns or trends that could improve your technical analysis and trading skills. Furthermore, analyzing your performance and results can provide insight into your strengths and weaknesses. This could include recognizing when you are good at spotting trends but bad at timing entries and exits, or when you are overtrading or trading emotionally. Lastly, making a plan with action steps to address issues and challenges can help you enhance your strengths and opportunities. For example, you might decide to use a different indicator or reduce your position size to practice more patience and discipline.

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Sourav Saha

Team Lead @ Axis Treasury & Markets Dealing | Ex-Citi, IndusInd, ICICI
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A regular trader maintains journal and review it time to time. You save the screenshot (SS) of your chart in a word document before taking the trade and mark the reason of your trade decision with indicators, TP and SL levels. You analyse the trade once the TP or SL got hit, with SS. In case of repetitive SL hit, you try your next trade with some different indicators. In this way you learn from mistakes & success both. More and more practice and journal maintenance makes you better trader every day! This may lead to a day when you find your Master trade set up which will help you to build up capital over time.

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4 How to use a journal

A technical analysis journal is invaluable for traders as it can be used to develop, test, and improve strategies and techniques, as well as plan and prepare trades. This journal also serves as a reference and checklist for technical analysis and trading rules, a reminder for risk management and money management, and a feedback and learning mechanism. By keeping track of your past trades in your journal, you can gain valuable insights to guide your future trades.

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5 How to optimize a journal

A technical analysis journal is not a static document, rather it is a dynamic and evolving process that reflects your growth and development as a technical analyst and trader. To optimize your journal, you can customize and personalize it to suit your preferences, style, and goals. Additionally, experimenting and innovating with your journal can help you enhance your technical analysis and trading performance. It is also beneficial to share and compare your journal with other traders and seek feedback, advice, and inspiration from them. Moreover, it is important to review and revise your journal regularly to ensure it is accurate, complete, and up-to-date. Lastly, archiving or backing up your journal can help keep it safe and accessible.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you keep a technical analysis journal?

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1 Benefits of a journal

2 How to create a journal

3 How to maintain a journal

4 How to use a journal

5 How to optimize a journal

6 Here’s what else to consider

Technical Analysis

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How do you keep a technical analysis journal?

1

2

3

4

5

6

1 Benefits of a journal

2 How to create a journal

3 How to maintain a journal

4 How to use a journal

5 How to optimize a journal

6 Here’s what else to consider

Technical Analysis

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