Lesson 37 · The Journal
If the same trade is called “breakout” on Monday, “ORB” on Tuesday and “momo” on Wednesday, your journal can’t tell you anything about it.
Pick a short, fixed list of setup names and use exactly those. Five to eight is plenty.
One trade, one setup. If a trade doesn’t fit any name, call it “no setup”, and count those.
Write the definition of each setup somewhere, so “bull flag” means the same thing in March as in September.
Grouping by setup is where most of a journal’s value comes from. It’s how you find out which trades carry your account and which ones just keep you busy. But grouping only works if names are consistent, and left alone, names drift.
Build a short list
Start with the trades you actually take, not the ones in books. Look back over your last few weeks and give each repeated type of trade a plain name. For small-cap momentum traders a list might look like this (examples, not a recommendation):
| Setup name | One-line definition |
|---|---|
| Gap and go | Premarket gapper, entry on the break of the premarket high |
| First pullback | First dip after a strong move, entry on the first candle to make a new high |
| Bull flag | Tight consolidation after a push, entry on the break of the flag |
| VWAP reclaim | Stock loses VWAP, then closes back above it with volume |
| No setup | Anything that doesn’t match a definition above |
The definition column matters more than the name. When you’re unsure what to call a trade, the definition decides.
The rules that keep it clean
- Use a dropdown, not free text, if your journal allows it. Typing invites “Bull flag”, “bullflag” and “flag” as three different setups.
- One setup per trade. If you want more detail, add a separate tag (“halt”, “low float”, “news”), but keep the setup itself singular.
- Keep “no setup” honest. Every impulse trade, boredom trade or chase goes there. It’s usually the most revealing row in the report.
- Don’t rename mid-month. If you change a definition, note the date, so you don’t mix two different trades under one name.
What to do with it
Once you have a few weeks of consistent names, sort your results by setup: number of trades, win rate, average win and loss in R, and total R. You may find that one or two setups do most of the work and others hover around zero or below. That’s the finding the weekly review is built to act on.
Adding a new setup is fine too. Just give it its own name so it doesn’t hide inside an old one while you find out whether it works.
Putting it together
- Use a fixed list of five to eight setup names.
- Write a one-line definition for each; the definition decides when you’re unsure.
- One setup per trade; extra detail goes in separate tags.
- Log impulse trades as “no setup” and watch that row.
- Sort results by setup once names are consistent.
An honest word: a tidy setup list doesn’t create an edge. It just makes it possible to see whether you have one, and where. Educational content only, not financial advice.
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