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Decision Journal

Learning goal: Build a journal that measures decision quality separately from the financial result.

1Learn

Decision Journal

A decision journal records context, thesis, trigger, invalidation, risk, execution and process grade in a consistent format.

Practical definition

A decision journal is an evidence trail of what was observed, inferred and executed before and after a trade.

How it works

P/L cannot distinguish a well-executed loss from a lucky rule-breaking win. Fixed fields make recurring execution patterns measurable.

Why it matters

Build a journal that measures decision quality separately from the financial result.

Applied scenario

Two trades both lose 1R. One followed every rule; the other entered late and widened its stop. Their outcomes match, but their process grades should not.

Decision process

  1. Capture a chart before entry.
  2. Write thesis and invalidation before execution.
  3. Record planned and actual risk.
  4. Grade process before analysing P/L.

Evidence to look for

  1. The pre-trade timestamp is preserved.
  2. Plan and review are separate fields.
  3. Rule violations are recorded even on winning trades.

Useful distinction

Robust approach

Fixed fields allow comparison by setup, session, risk and execution error.

Weak approach

Free-form notes written after the result encourage post-hoc explanations.

⚠ Common mistakes

  • Journaling only after losses.
  • Changing the stated reason after exit.
  • Recording P/L without process compliance.

βœ“ Execution checklist

  • The pre-trade timestamp is preserved.
  • Plan and review are separate fields.
  • Rule violations are recorded even on winning trades.
  • Capture a chart before entry.
2See an example

Guided practice

Hide the P/L of five trades, grade their process, then reveal the outcomes and compare the two rankings.

1Learn→2See an example→3Practice→4Test yourself
Fixed fields allow comparison by setup, session, risk and execution error.
1Learn→2See an example→3Practice→4Test yourself
Free-form notes written after the result encourage post-hoc explanations.
3Practice

Practice

Guided practice

Which field must be recorded before the outcome is known?

Concept Choice

πŸ’‘ The emphasized element is a clue; still submit the answer yourself. The pre-trade thesis must be recorded before the outcome so hindsight cannot rewrite it.

Expected answer / evaluation criteria

The pre-trade thesis must be recorded before the outcome so hindsight cannot rewrite it.

Assisted practice

Which journal entry provides more reliable evidence?

A

reason rewritten after result

β–€
B

pre-trade plan + post-trade review

β–€

Concept Choice

Expected answer / evaluation criteria

Journal B separates a pre-trade plan from post-trade review; A rewrites the reason after the outcome.

Independent practice

What is the most important missing field in this journal?

Concept Choice

Expected answer / evaluation criteria

Invalidation is the critical missing field; without it, the thesis has no defined failure condition.

4Test yourself

Knowledge check

Which decision best follows a professional process?
What must be known before entry?
What should happen when the scenario is invalidated?
+20 XPLesson resultContinue to course map β†’

Lesson summary

  • Record reasons before outcomes.
  • Separate execution quality from money made.
  • Use stable fields so patterns can be counted.

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Educational content only β€” not financial advice and no guarantee of profit.