How to Make a Trading Journal in Excel (with Easy Steps)

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While working with Microsoft Excel, sometimes we need to make a trading journal. One of the most crucial responsibilities for professional traders is keeping a trading journal. It makes it simple to decide on the next step and makes it easier to follow the growth. However, for big volume daily traders, in particular, this activity quickly becomes time-consuming. A Trading journal helps you to keep your trade track easily. Today, in this article, we’ll learn four quick and suitable steps to make a trading journal in Excel effectively with appropriate illustrations.

Table of Contents hide

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Introduction to Trading Journal

4 Quick Steps to Make a Trading Journal in Excel

Step 1: Create Dataset with Proper Parameters

Step 2: Apply Mathematical Formula

Step 3: Perform SUM Function

Step 4: Create Waterfall Chart

Things to Remember

Conclusion

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Trading Journal.xlsx

Introduction to Trading Journal

The trader book which keeps about their personal trading experience is called a trading journal. A trading journal captures market choices so you may go back and identify any flaws in procedure, risk management, or discipline. You can alter anything if you can measure it. If you are conscious of how you act, you may stop repeating the same mistakes and learn from your own mistakes. Traders need to keep note of their entry, exits, emotions, stress levels, and position size.

Simply described, a trading journal is where you would record the events of each day, such as:

Profits
Losses
The trade you’ve struck.
The trade you had in mind but didn’t complete.
Further pertinent data.

4 Quick Steps to Make a Trading Journal in Excel

Let’s say, we have a dataset that contains information about several Trades. We will make a trading journal in Excel using Mathematical formulas, the SUM function, and creating a waterfall chart. Here’s an overview of the dataset for today’s task.

Step 1: Create Dataset with Proper Parameters

In this portion, we will create a dataset to make a trading journal in Excel. We will make a dataset that contains information about several Trades. Our dataset contains the trading company name, trade types, the quantity of trades, entry and exit price of trades for a day, profit and loss, commission, and so on. So, our dataset becomes.

Step 2: Apply Mathematical Formula

In this step, we will apply the mathematical formula to calculate the commission and the net profit/loss. We can easily do that. We will calculate the 0.5% commission using the mathematical multiplication formula. Let’s follow the instructions below to learn!

First of all, select cell I10 for the convenience of our work.
After selecting the cell I10, write down the below mathematical formula.

=E10*0.5%

Where E10 is the trade Quantity, and 5% is the commission.

Hence, press Enter on your keyboard.
As a result, you will be able to get the return of the mathematical formula and the return is $2.50.

After that, AutoFill the mathematical formula to the rest of the cells in column I which has been given in the screenshot.

Again, select cell J10 for the convenience of our work.
After selecting the cell J10, write down the below mathematical subtraction formula.

=H10-I10

Where H10 is the Profit or Loss, and I10 is the commission.

Hence, press Enter on your keyboard.
As a result, you will be able to get the return of the mathematical formula and the return is $557.50.

After that, AutoFill the mathematical formula to the rest of the cells in column J which has been given in the screenshot.

Step 3: Perform SUM Function

In this portion, we will apply the SUM function to calculate the Net Profit or Loss. From our dataset, we can easily apply the SUM function to calculate the Net Profit or Loss. Let’s follow the instructions below to learn!

First of all, select cell J10 for the convenience of our work.
After selecting the cell J10, write down the SUM function below.

=SUM(J10:J16)

Hence, press Enter on your keyboard.
As a result, you will be able to get the return of the SUM function and the return is $393.96.

Hence, we will calculate the total account balance using a mathematical summation formula.
The formula is,

=G4+G5

Where G4 is the starting account balance, and G5 is the total profit or loss.

Step 4: Create Waterfall Chart

In this portion, we will create a waterfall chart to understand the net profit or loss of a trading journal. Let’s follow the instructions below to learn!

First of all, select the range of data to draw a waterfall chart.
From our dataset, we select C10 to C16 and J10 to J16 for the convenience of our work.
After selecting the data range, from your Insert ribbon, go to,

Insert → Charts → Recommended Charts

As a result, an Insert Chart dialog box will appear in front of you.
From the Insert Chart dialog box, go to,

All Charts → Waterfall → OK

Hence, you will be able to create a Waterfall chart which has been given in the below screenshot.

Things to Remember

👉 #N/A! error arises when the formula or a function in the formula fails to find the referenced data.

👉 #DIV/0! error happens when a value is divided by zero(0) or the cell reference is blank.

Conclusion

I hope all of the suitable steps mentioned above to make a trading journal will now provoke you to apply them in your Excel spreadsheets with more productivity. You are most welcome to feel free to comment if you have any questions or queries.