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Trading plan

A written document defining what you trade, when, with what setups, how much risk, and what you do when things go wrong.

A plan turns trading from a series of decisions under stress into execution of decisions made calmly. It covers markets and sessions, setup criteria, risk-per-trade, daily loss limits, position-sizing, and review routines.

A plan you do not follow is a wish list. The trading-journal measures plan adherence separately from profit, because you can follow the plan and lose or break it and win.

Example: a plan states: ES only, 9:30 to 11:30 a.m., two setups, 0.5% risk, stop for the day at -1.5%, no trades within 5 minutes of tier-1 news. Every trade is graded against it.

Related: trading-journal, risk-per-trade, process-over-outcome, overtrading

Educational only, not advice. Spotted an error? Post in Site Feedback.