Memory is a poor record of trading performance. We remember the big wins and explain away the losses. A journal shows what really happens.
What to record for each trade
- Date, underlying, strategy, strikes and expiry.
- Why you entered: your view and what would prove it wrong.
- Entry price, size and maximum risk.
- Exit price, date and reason for exiting.
- How you felt: calm, rushed, frustrated, overconfident.
Reviewing it
Once a month, sort trades by strategy and by result. Look for patterns: which setups work, how often you break your own rules, and whether losses cluster after a big win or a big loss.
Keep it simple
A spreadsheet is enough. The value comes from filling it in every time and reading it honestly, not from the tool you use.
This article is for education only and is not financial advice. Options involve risk and are not suitable for every investor.