Tracking Emotions, Thoughts, and Setup Quality
Most traders focus on price, entries, and exits—but rarely log what matters most: their mindset during the trade. Tracking emotions, thoughts, and setup quality in your journal gives you an edge no chart can provide. It’s not just about technicals; your mental and emotional state influences every click. For prop firm traders working with Prop Shop Traders or The Legends Trading, this data could mean the difference between passing an evaluation or resetting it.
Why Track Emotions and Thoughts?
Success in trading is often more psychological than analytical. By logging emotional triggers, internal dialogue, and setup confidence, you can identify destructive patterns such as:
- Overtrading due to boredom or frustration
- Hesitation in high-quality setups
- Impulsive decisions after a loss
Without a record, these patterns repeat unconsciously. With a journal, they’re exposed—and once you see them, you can change them.
What to Log Daily
Here’s a framework you can apply each day:
- Emotional Baseline: How did you feel before trading?
- In-Trade Emotions: Were you anxious, excited, fearful?
- Thoughts During Trade: What beliefs drove your decisions?
- Setup Quality Score: Grade from 1 (poor) to 5 (ideal)
This creates a real-time mirror of your internal state.
How to Score Setup Quality
Develop a grading rubric based on your rules. For example:
- 1 = No edge, impulsive
- 2 = Weak setup, forced entry
- 3 = Decent setup but poorly timed
- 4 = Meets most criteria
- 5 = High-conviction A+ setup
When setup quality consistently scores 4–5 and your emotions are stable, you’re likely in sync with your strategy.
Using Colors for Emotional Tags
To speed up review, use colors for emotional states:
- Green: Calm, focused, present
- Orange: Slightly distracted or reactive
- Red: Frustrated, angry, impulsive
This makes scanning your emotional data easier and highlights when emotional volatility aligns with performance dips.
Examples of Journal Entries
Trade 1:
- Emotion: Calm (green)
- Thought: “Waited patiently for my zone.”
- Setup Quality: 5
- Result: +2.5R
Trade 2:
- Emotion: Anxious (orange)
- Thought: “Didn’t want to miss it.”
- Setup Quality: 2
- Result: -1.5R
This type of data helps you see which behaviors produce which outcomes.
End-of-Day Reflection Prompts
- What emotion was dominant today?
- How did it influence your decisions?
- Which trade best reflected your plan?
- What will you adjust tomorrow?
These prompts build emotional awareness and reduce reactive behavior over time.
How This Applies to Prop Firm Trading
In a prop firm evaluation, the smallest mistake can trigger a rule violation. If you log your thoughts and emotions daily, you’ll catch tendencies like:
- Revenge trading after a red day
- Deviating from size rules due to overconfidence
- Breaking strategy after a small win streak
Firms like Funded Futures Network and Instant Funding often require rule adherence more than raw profit, so tracking mental states is essential to staying funded.
Digital vs. Paper Journaling
If you prefer a spreadsheet, use drop-down menus for emotional states and numeric ratings. If you prefer a paper method, consider using the printable formats from Prop Firm Press Journal Sheets that include setup grading and mindset prompts.
Consistency Over Perfection
You won’t track perfectly every day. That’s okay. The goal is not flawless logging—it’s awareness. With time, your journal becomes a personal trading therapist, reflecting your strengths and blind spots back to you.
Keep it honest. Keep it simple. And make reviewing your emotions and thoughts as important as reviewing your charts. That’s where the true edge lies.