Journaling & Tracking Your Supply & Demand Trades
Introduction to Trading Journals
A trading journal is one of the most underutilized yet powerful tools available to traders. It provides a structured way to record, review, and learn from your trading activities. For supply and demand traders, a well-maintained journal can reveal patterns in market behavior and your own decision-making process that might otherwise go unnoticed.
Trading without a journal is like navigating without a map. You might occasionally find your way, but you'll miss the opportunity to learn from mistakes, capitalize on successes, and develop a consistent approach to the markets. Journaling converts experiences into insights and insights into improved trading performance.
Essential Components of a Supply & Demand Trading Journal
1. Trade Setup Information
Record the technical details of each trade setup, including the specific supply or demand zone you identified, the timeframe, and the market conditions that led to your decision.
2. Entry and Exit Details
Document precise entry and exit points, including initial stop loss and take profit levels. Note any adjustments made during the trade and the reasoning behind them.
3. Risk Management Metrics
Track position sizing, risk-to-reward ratio, and percentage of account risked per trade. These metrics help ensure consistency in your risk management approach.
4. Screenshots and Annotations
Include before, during, and after screenshots of your trades with clear annotations highlighting supply and demand zones, entry/exit points, and key market movements.
5. Psychological Notes
Record your emotional state before, during, and after the trade. Note any psychological factors that may have influenced your decision-making.
6. Market Context
Document broader market conditions, including relevant news events, overall market sentiment, and multi-timeframe analysis insights.
Sample Trade Journal Entry Template
| Category | Details to Record |
|---|---|
| Date & Time | Trade date, entry time, exit time |
| Instrument | Trading pair/asset |
| Trade Direction | Long/Short |
| Timeframes Analyzed | Primary timeframe and higher timeframes consulted |
| Supply/Demand Zone | Zone type, strength rating, confirmation factors |
| Entry Details | Price, trigger conditions, initial stop loss |
| Exit Details | Price(s), reason for exit (target hit, stop hit, manual) |
| R:R & Position Size | Risk:reward ratio, % of account, position size calculation |
| Results | Profit/loss in pips/points and account currency, % gain/loss |
| Psychology | Emotional state, confidence level, trading mindset |
| Trade Analysis | What worked, what didn't, lessons learned |
| Follow-up Actions | Specific improvements to implement in future trades |
Tracking Performance Metrics
Beyond individual trade journaling, track key performance metrics over time to identify patterns and trends in your trading:
Essential Metrics to Track
- Win rate percentage
- Average win size vs. average loss size
- Maximum drawdown
- Profit factor (gross profits ÷ gross losses)
- Expectancy (average profit per trade)
- Performance by market condition (trending, ranging, volatile)
- Performance by supply/demand zone type
- Performance by time of day
The real value of tracking metrics comes from the insights they generate. Look for correlations between different variables to uncover your strengths and weaknesses. For example, you might discover that your win rate is significantly higher when trading off higher timeframe supply zones, or that your average loss increases during certain market conditions.
Journal Analysis: Turning Records into Improvement
Regular Review Process
Establish a consistent schedule for reviewing your trading journal. Consider these review intervals:
- Daily Review: Quick reflection on the day's trades
- Weekly Review: Deeper analysis of all trades taken that week
- Monthly Review: Comprehensive performance assessment and pattern identification
- Quarterly Review: Strategic adjustments to your trading plan based on journal insights
Structured Analysis Framework
When analyzing your journal entries, consider these key questions:
- Are there patterns in your winning trades? What common factors do they share?
- Are there patterns in your losing trades? What common factors do they share?
- How well are you adhering to your trading plan? Where are the deviations?
- Which supply/demand zone characteristics lead to the most profitable trades?
- How do external factors (news events, time of day) affect your performance?
- What psychological patterns emerge? Are there emotional triggers that lead to poor decisions?
Sample Journal Analysis
Monthly Review - February 2025
Summary Statistics:
- Total Trades: 42
- Win Rate: 62%
- Average Win: 2.1R
- Average Loss: 0.8R
- Profit Factor: 1.8
- Net Profit: +14.3% account growth
Key Insights:
- Supply zones on the 4-hour timeframe that align with daily trend have a 78% win rate
- Trades taken during London/NY session overlap have +2.4R average return vs. 1.6R overall
- Trades with 3+ confirmation factors have 85% win rate vs. 45% for trades with only 1-2 confirmations
- Reduced average loss size by implementing tighter initial stops based on market volatility
- 55% of losing trades occurred when trading against higher timeframe trend
Action Items for Next Month:
- Prioritize setups that align with daily trend direction
- Focus trading activity during London/NY overlap when possible
- Implement minimum 3-confirmation rule for all trade entries
- Continue volatility-based stop loss adjustments
- Develop checklist for higher timeframe trend confirmation before entries
Choose a journaling method that fits your workflow and that you'll consistently maintain. Even the most sophisticated journaling system is useless if you don't regularly update and review it. Start simple and add complexity as your journaling habit develops.
Quiz: Journaling & Tracking Your Trades
1. What is the primary purpose of maintaining a trading journal?
2. Which of the following is NOT typically included in a supply and demand trading journal?
3. How often should you review your trading journal for optimal improvement?
4. Which of these metrics is most useful for understanding the average profit you can expect per trade?