Building a Trading Plan

Lesson 1: Why write it down

A written plan removes decisions from the moment, when emotions are highest. If a trade isn't in the plan, you don't take it.

Lesson 2: Markets and schedule

Choose two to five instruments you'll learn deeply, and the hours you'll trade. Match them: EUR/USD is most active in the London and New York sessions; US index futures around the New York open.

Lesson 3: Your setup rules

Write exact conditions for entry, stop and exit. "Price looks strong" isn't a rule; "close above the prior day's high with the 50 MA above the 200 MA" is. Start from a documented strategy such as trend following.

Lesson 4: Risk limits

• Risk per trade (e.g. 1%).
• Maximum daily loss (e.g. 3%), after which you stop.
• Maximum open risk across all trades.

Lesson 5: Journal and review

Record every trade: setup, entry, exit, screenshot and whether you followed the plan. Review weekly. Change one rule at a time, and only after enough trades to judge it.