Building a Trading Plan
Create a structured plan that removes guesswork
4 sections · 3 quiz questions · ~5 min read
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.
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."
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.
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