A trading journal should separate process from outcome

Keep the original decision record

Before a hypothetical trade, record the setup, confirmation time, invalidation, size, expected costs and any event restrictions. Afterwards add actual assumed fills, costs and the reason for exit. Keep the original plan rather than rewriting it to match the result.

Use a small, consistent set of process tags, such as premature entry, excess size or moved invalidation. Tag evidence, not feelings. Compare like setups and market conditions, and track adherence as well as results. One dramatic example is a prompt for investigation, not proof of a general rule.

Worked example: profit with only 60% adherence

Imagine ten planned exercises with risk unit R defined as $100. Six rule-compliant trades earn a combined +1.2R. Four trades with documented violations earn +2.0R because one oversized position happens to win. Overall profit is +3.2R, or $320, before any costs not already included.

The positive result does not show that violating the rules improved the method. Adherence is only 6 / 10 = 60%. Preserve the rule-based alternative separately, but label it a hypothetical counterfactual: without reliable execution assumptions, the journal cannot claim an exact dollar cost for every error.

Avoid rewriting history through the tags

A small journal has substantial sampling uncertainty, and retrospective tags can be biased by whether the trade won. Define the tags before reviewing results where possible. Changing entry and exit rules together makes it hard to identify the cause of improvement. Protect personal data and keep sensitive account details out of publicly shared examples.

Link the journal to the confirming bars

For available closed daily, weekly or monthly bars, record a dated chart reference and the bars that supported the original decision. Later compare the written condition with what actually closed. Student Wyckoff Pro supports the price-structure review; the journal, process tags and financial reconciliation should be maintained in a separate record.

Primary sources

Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.

• Building a Trade Plan

Sources checked: 2026-10-23