Why You Need a Trading Plan

A trading plan isn’t just a checklist—it’s your personal rulebook. It defines what you trade, when you trade, and how you manage risk. No plan means making emotional decisions. With a plan? You’re the CEO of your trading business.

5 Essential Elements of a Trading Plan

1. Define Your Goals

Ask Yourself:

• Are you trading for income, growth, or learning?
• What’s your monthly profit target?

Example: "I aim for 5% monthly returns with a max 2% risk per trade."

2. Choose Your Strategy

Pick One: Scalping, day trading, swing trading, or position trading.

Include:

• Entry/exit rules.
• Indicators or tools (e.g., RSI, moving averages).

3. Set Risk Management Rules

Non-Negotiables:

• Risk per trade (1-2% of account).
• Daily/weekly loss limits.
• Stop-loss and take-profit rules.

4. Create a Trading Schedule

Why: Markets are 24/5, but you shouldn’t be!

Example: "Trade London session (8 AM–5 PM GMT) and avoid weekends."

5. Track & Review with a Trading Journal

What to Log:

• Trades (entry/exit, reasons, emotions).
• Wins, losses, and lessons learned.

Interactive Section: Test Your Planning IQ!

Think you're ready to build a bulletproof plan? Prove it!

What's Next?

Now that you’ve built your trading blueprint, let’s dodge the pitfalls!