I used to think keeping a trade journal was just about tracking what happened.
Buy price, sell price, target, exit plan, profit or loss — write it down, move on.
And that made a huge difference. That's when I stopped guessing and started trading. I recently wrote about how tracking my trades forced me to start trusting my logic instead of my emotions. That notebook turned me into a more confident, more relaxed, and — let's be honest — more profitable investor.
Something else happened when I started keeping a trade journal... I started noticing all the professional traders I worked with kept them too. In fact, a few actually kept their journals with them at all times, ready to jot down market insights or shifts in sentiment the moment they happened.
It was proof that this wasn't just some beginner's trick — it was a serious tool for anyone who wanted to invest with intention.
I wanted to know what the best traders were writing down. Me being me, I started asking questions, specifically...
1. What were they tracking in their notes?
2. What one thing could I start tracking to make me a better trader?
The answers to the first question — what they tracked — were all over the place. One tracked Bollinger Bands, another swore by five-minute candlesticks, another said it was all about fundamentals... but none of that really helped me.
The second question, though? That answer was always the same, and it's what took my trading to a completely new level.
The One Upgrade That Changed Everything
So, what was the magical answer to that second question?
"Start tracking what you think will happen next."
Why did this help? Because being a better trader isn't just about picking better stocks — it's about learning to read the market and yourself more accurately. Practice this skill enough, and over time, you won't just be following a strategy — you'll be developing a deep intuition for the market. And that's what separates the best traders from everyone else.
And they were absolutely right. When I started writing down not just what I was seeing in the past, but what I expected to happen next, everything changed. Would this stock hold its breakout level? Would it pull back before running higher? Would earnings send it soaring or tanking?
I didn't get everything right, of course. Far from it. But that wasn't the point. The point was that when I went back later, I could see exactly where my thinking was right... and where I was dead wrong.
Suddenly, I wasn't just reacting to the market — I was testing my own instincts, refining my strategy and understanding of the market, and seeing where I was getting in my own way.
Where fear was making decisions for me.
Where I was hesitating when I should have acted.
Where I was second-guessing the exact trades I'd spent so much time researching.
And that's what separates a basic trade journal from an advanced one. It's not just about keeping records. It's about making your future trades better.
Later this week, I'll give you my step-by-step guide for turning your basic trade journal into a market prediction tool. Stay tuned!
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
