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Module D · Strategy & Execution·Lesson 1

Building a Trading Plan

Create a structured plan that removes guesswork

4 sections · 3 quiz questions · ~5 min read

Guided course path

Keep building a trading plan inside the live track.

You are reading a reference lesson. The live course path gives you the lesson order, checks, saved progress, and next step. Execution makes more sense after the chart bias, key levels, and timeframe context are clear.

Closest track: Technical Analysis + Price ActionFirst lesson: The top-down framework
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Why You Need a Plan

A trading plan is your rule book — it defines what, when, and how you trade. Without one, every decision is emotional. With one, trading becomes systematic. Profitable traders follow plans; gamblers follow feelings.
Wick holds a clipboard with four checked boxes for key level, candle confirmation, higher timeframe agreement and 1:2 risk to reward, showing a rule-based entry.Entry checklistAt a key S/R levelCandle confirmsHigher TF agrees1:2 RR or better
Wick saysA setup only counts when every box on your entry checklist is ticked.

Key Components

Your plan should include: markets traded, timeframes used, entry criteria, exit rules (TP and SL), risk per trade (1-2%), maximum daily/weekly loss limits, and trading hours. Be specific — no vague "when it looks good."
Wick shows a green card for clear entry and exit rules and a coral card for trading when it looks good, teaching that a plan needs specific rules.Do thisClear rules forentry and exitNot thisTrade when itlooks good
Wick saysWrite specific rules; "when it looks good" is a feeling, not a plan.

Entry Criteria Checklist

Example checklist: ✓ Price at key S/R level ✓ Candlestick confirmation ✓ Trend alignment on higher timeframe ✓ Minimum 1:2 RR available ✓ Not during major news events. All boxes checked = valid trade.
Wick writes in a notebook with lines for pair and setup, entry and exit, a screenshot and feelings, showing what a trade journal entry records.Trade journalPair, timeframe, setupEntry, exit, RRScreenshotHow I felt
Wick saysLog every trade with the setup, numbers, a screenshot and how you felt.

The Trading Journal

Record every trade: entry/exit, pair, timeframe, setup type, RR, result, screenshot, and notes on your emotional state. Review weekly. Your journal reveals patterns in your trading that your memory cannot capture.
Quick check

Did it stick?

Try to answer each one before you peek at the explanation.

1

Which is NOT a necessary component of a trading plan?

2

You should keep a trading journal only for losing trades.

3

Match the plan component to its purpose:

Entry Checklist→Validates trade setups
Daily Loss Limit→Prevents revenge trading
Trading Journal→Tracks performance patterns