# Trading Plan vs. Trading Journal - The Differences

> A trading plan and a trading journal are two different tools. Learn how they work together to create a profitable feedback loop.

**Tags:** trading-plan, trading-journal, fundamentals, trader-growth
**URL:** https://traderjournal.app/trading-plans/trading-plan-vs-trading-journal

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# Trading Plan vs. Trading Journal - The Differences

Many retail traders confuse a trading plan with a trading journal, or think they only need one. In reality, they are two distinct tools.

- A **trading plan** is forward-looking. It outlines how you will trade in the future.
- A **trading journal** is backward-looking. It records how you actually traded in the past.

Using both tools creates a feedback loop that leads to consistency.

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## The Forward-Looking Trading Plan

Your plan defines your rules. It is your guide before the market opens. It answers questions like:
- Which currency pairs will I trade?
- What timeframes will I analyze?
- What triggers an entry?
- How do I size my positions?

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## The Backward-Looking Trading Journal

Your journal records your actions. It is your review tool after the market closes. It answers questions like:
- Did I actually follow my plan?
- Did I size my positions correctly?
- Which setups are making money?
- What emotional mistakes did I make?

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## The Feedback Loop

The trading plan creates the rules. The trading journal tests the rules. The journal data is used to optimize the plan. This continuous feedback loop is how amateur traders become professionals.

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Trader Journal for MT4 and MT5 automates the tracking phase of this loop, making it easy to compare your plan's goals with your actual performance.

Download it today at android.traderjournal.app or ios.traderjournal.app.