A trading plan is like your personal roadmap. It tells you exactly when to enter a trade, how much to risk, and when to get out. Without it, you’re just guessing — and guessing usually leads to losing.
Let’s build your first trading plan in 5 easy steps.
🧩 Step 1: Define Your Trading Goal
Ask yourself:
Do I want to grow my capital slowly over time?
Do I want short-term profits to withdraw monthly?
Am I trading part-time or full-time?
Example:
"I want to grow my $500 account to $1,000 over 6 months by trading 3 times a week with low risk."
📌 A clear goal helps you stay focused and avoid emotional decisions.
🕐 Step 2: Choose Your Trading Style
Pick a style that fits your lifestyle and availability.
Scalping – Very short trades (minutes)
Day Trading – Trades within a single day
Swing Trading – Hold for days or weeks
Position Trading – Hold for weeks to months
Example:
"I will be swing trading on the 4-hour and daily charts, checking the market once per day."
💡 Step 3: Define Your Strategy
This is the “how” behind your trades.
Your plan should answer:
What makes you enter a trade? (e.g., breakout, trendline bounce, candlestick pattern)
What indicators or tools will you use? (e.g., Moving Average, RSI)
What timeframes will you trade?
Example:
"I will buy if the price breaks above resistance on the 1-hour chart with RSI confirmation above 50."
📌 Keep it simple. One or two indicators is enough.
💰 Step 4: Set Your Risk Rules
Trading without risk rules is dangerous. Always define:
How much you’ll risk per trade (e.g., 1–2% of your account)
Your stop loss and take profit strategy
How many trades you’ll open at once
Example:
"I will risk 1% of my account per trade with a 1:2 risk-reward ratio. I’ll never open more than 3 trades at once."
📓 Step 5: Track Everything
Use a trading journal to record:
Why you entered the trade
Entry and exit prices
What you felt during the trade
What you learned
This helps you spot patterns in your behavior and improve over time.
Free tool to try:vUse Google Sheets or a free journal template from Myfxbook or Edgewonk.
✅ Bonus: Your Simple Trading Plan Template
Here’s a quick summary you can copy and adjust:
Goal:
Style:
Pairs to Trade:
Strategy Entry Rules:
Indicators Used:
Risk Per Trade:
Stop Loss & Take Profit Rules:
Max Trades at Once:
Trading Schedule:
Journal Method:
✍️ Final Tip
Don’t wait until you’re “perfect” to start planning. Even a basic plan will give you more confidence and structure than trading on impulse.
📌 Plan the trade — then trade the plan.