Trading Plan

A trading plan is a complete written document that defines every aspect of your trading: what markets you trade, what setups you take, how you size positions, how you manage risk, and what rules you follow. It's your business plan.

Key insight: Trading without a plan is like driving without a map. You might get somewhere, but probably not where you want to be. The plan eliminates real-time decision-making under pressure — the state where most traders make their worst choices.

A good trading plan is specific enough to follow mechanically. If two traders with the same plan look at the same chart, they should reach the same conclusion. If your plan leaves room for 'maybe' or 'I feel like,' it's not specific enough.