Risk management for traders · Lesson 4 of 4
A trading journal and consistency
6 min
What a journal is
A journal is a record of every trade: not just the profit or loss, but why you entered and how you exited. Without a journal you do not learn from your mistakes, because you do not remember them.
The minimum to record
| Column | Example |
|---|---|
| Date and symbol | Tuesday, EUR/USD |
| Reason for entry | Break of resistance with confirmation |
| Risk | One percent, twenty-five pip stop |
| Result | Minus one percent |
| Followed the plan? | Yes / No |
| Your state | Tired, rushed, calm |
"Followed the plan" is the most important column
A losing trade that followed the plan is a good trade. A winning trade outside the plan builds a bad habit. At the end of each week, work out the share of trades that followed the plan and try to keep it above ninety percent.
What consistency means
Investors and evaluators look for a calm equity curve, not jumps. If most of a month's profit came from one day, that points to heavy risk on that day. That is why some evaluation programmes have a consistency rule: the best day's share of total profit may not exceed a set limit.
End of the course
Now take the course quiz. With a passing score you receive a certificate of completion, and you are ready to test the rules on a real account.
Enrol in the course to save your progress and take the quiz.
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