Glossary
Trading plan
What is trading plan?
A trading plan is a written set of rules for how you trade, what you trade, your setups, entries, exits, risk per trade, and the conditions under which you stop. Its value isn't the document; it's whether the rules hold when pressure makes breaking them feel reasonable.
Example
Your plan says one percent risk and no trades in the first five minutes after the open. The plan is only real on the morning you're tempted to size up and jump in early anyway.
Why it matters
A plan turns trading from reaction into decision. But a plan you don't follow under pressure is just a wish, the gap between writing it and keeping it is where most edge is lost.
Common signs
- The plan exists but changes in the middle of a trade
- Rules are vague enough to justify almost anything
- You can't say what would make you NOT take a trade
- You follow it on calm days and abandon it on hard ones