Keep a trading journal and review your results
A journal turns trading from guesswork into something you can measure. Without one, you remember your best trades and forget your worst.
What to record
For every trade: date, time, market, direction, size, entry, exit, stop, profit or loss after fees, and which setup it was. Then a line on why you took it and whether you followed your plan. Once a day, add a few notes on the session and how you felt.
The numbers that matter
- Win rate: the share of trades that make money. On its own it means little.
- Average win and average loss: how big your winners and losers are.
- Expectancy: what you make per trade on average: (win rate × average win) − (loss rate × average loss). With a 45% win rate, a $300 average win and a $200 average loss, expectancy is (0.45 × $300) − (0.55 × $200) = $25 per trade. Positive expectancy is the sign of an edge.
- Profit factor: total profit divided by total loss. Above 1 means you're making money.
- Maximum drawdown: your largest drop from a peak. It tells you what a bad stretch looks like.
The weekly review
Once a week, look at the numbers by setup, time of day and market. Which setups make money? Which trades broke your rules, and what did they cost? Change one thing at a time and see whether the numbers improve. The trading journal guide covers this in more depth.
You can do all of this in a spreadsheet. TradeHarbor's free plan imports your trades from most futures platforms and calculates these numbers for you. You can also explore a demo with sample trades.