A paper trading journal should let you reconstruct a hypothetical trade after the chart has moved. Record the plan before entry, then record the outcome without rewriting the original decision.
Identify the trade
Start with fields that keep each record unambiguous:
- date and time;
- ticker with its exchange, such as
AAPL.USorBHP.AU; - market and direction;
- strategy name;
- chart timeframe;
- a link or image of the chart, if your journal supports one.
Use the same strategy name each time. Changing labels makes later comparisons harder.
Record the plan before entry
Write enough detail to decide whether the trade qualified before you know the result:
- the setup and market context;
- the exact entry trigger;
- planned entry price;
- stop price and the reason for it;
- target or exit rule;
- planned position size;
- planned risk in money and as a percentage of the account;
- the rules that must remain true while the trade is open.
Avoid a note such as "the chart looked strong." Name the condition you observed. For example: "Hypothetical setup: price closed above the prior five-session high after a pullback." The five-session rule belongs to this exercise; it isn't a universal trading rule.
State how you modelled the fill
A chart price doesn't prove that an order would have filled there. Record whether you modelled a market, limit or stop order. Add the bid or offer, assumed slippage, fees and whether the displayed quantity appeared sufficient.
The SEC's order-type bulletin explains that a market order's price can change and a limit order can remain unfilled. Your paper journal should preserve those assumptions so you don't mistake a favourable chart mark for a live fill.
Record management without changing the plan
Add a dated note when you change a stop, target or position size. Keep the original value beside the new one. Otherwise, you won't be able to tell whether the exit followed the strategy you meant to test.
Useful management fields include:
- date and time of the decision;
- old and new stop or target;
- units added or removed;
- the rule that allowed the change;
- your reason at the time.
Swing trades can remain open across several sessions, so add overnight context when it affects your plan. Record an earnings date, planned announcement or market closure that you knew about before entry. If the price gaps past your planned stop, keep the stop in the record and write down the assumed exit price you used.
Close the paper trade
Record the exit date, assumed exit price, quantity and fees. Then calculate the hypothetical profit or loss.
R-multiple compares the result with the initial planned risk. If a hypothetical trade risked $100 and gained $180 after costs, the result is $180 / $100 = 1.8R. If it lost $100, the result is -$100 / $100 = -1R.
Also record:
- exit reason;
- whether each strategy rule was followed;
- any difference between the planned and assumed fill;
- one specific observation for the next review.
An emotion field can capture what you reported at entry or exit, but don't treat the label as a diagnosis or a cause of the outcome.
Review comparable trades
Choose a regular review time that fits your trading frequency. A calendar week is one option, not a requirement.
First check data quality. Count missing plans, missing exits and trades entered after the outcome was known. Fix the recording process before relying on the summary.
Then review:
- win rate and average R;
- average win and average loss;
- profit factor and expectancy;
- rule adherence;
- results by strategy;
- assumed costs and fill differences.
The formula for expectancy is:
(win rate x average win) - (loss rate x average loss)
Keep wins and losses in the same unit. A positive sample expectancy describes the trades you recorded. Future returns can differ.
The trading performance tracker explains how a structured journal can organise these calculations. Swingfolio calculates performance metrics from your entered trades and lets you filter Analytics by portfolio.
Copyable paper trade example
This hypothetical entry shows the level of detail you need:
- Instrument:
DEMO.AU, long, daily chart - Strategy: five-session breakout exercise
- Trigger: close above $20.00, followed by an entry at the next session's offer
- Assumed entry: 100 units at $20.10
- Initial stop: $19.60, based on the exercise rule
- Initial risk:
($20.10 - $19.60) x 100 = $50, before costs - Target: $21.10, giving a planned reward of
$1.00 x 100 = $100 - Planned risk to reward:
$50:$100 = 1:2, before costs - Known overnight event: no scheduled company announcement recorded
- Exit: 100 units at an assumed $20.85, less $10 total costs
- Result:
(($20.85 - $20.10) x 100) - $10 = $65, or$65 / $50 = 1.3R
The fictional ticker keeps the example separate from a real investment idea. Your entry should use the rules, costs and market information available for the instrument you are practising.
Review the example as a decision
The 1.3R result doesn't tell you whether the entry followed the strategy. Check the record in order. Was the breakout condition met? Was the $20.10 entry consistent with the fill rule? Did the exit follow a target, stop or documented management rule?
This is why a journal needs both numbers and decisions. The numbers measure the outcome. The plan and notes show whether the outcome belongs to the strategy you intended to practise.
Keep paper records recognisable
Use a separate file, account label or paper portfolio for practice trades. In Swingfolio, create a paper portfolio for the exercise and select it when reviewing Analytics. This makes it easier to compare the strategy without mixing practice and live results.
For a complete practice process, read paper trading for swing traders and follow the step-by-step strategy paper trading workflow. Then add the plan and fill-assumption fields to your next hypothetical trade before the entry condition occurs.
Paper trading journal questions
Can I use a spreadsheet?
Yes. Use consistent columns, protect the original plan and keep paper trades separate from live ones. A dedicated journal becomes useful when you want structured strategy assignments, calculations and review views without maintaining formulas yourself.
Should I track screenshots?
A chart image can preserve what you could see at entry and exit. Pair it with text fields because an image alone may not show the rule, order assumption or reason for the trade.
How much detail is enough?
Track enough to reconstruct the decision and calculate the result. If a field never changes a review question or action, remove it. If you keep asking a question the journal can't answer, add the missing field before the next trade.
Should I record trades I missed?
Record a missed qualifying setup when you are testing whether you can follow the scanning and entry routine. Keep it separate from entered trades so it doesn't distort win rate or profit calculations.
Once your records are consistent, use the paper-to-live readiness guide to assess risk limits and the transition process.