If you opened a restaurant, you would have recipes, hours, and a budget. Yet, 90% of traders open their charts with **zero plan**. They see a green candle and feel **"Fear of Missing Out" (FOMO)**.
**This is not trading. This is gambling.** A **Trading Plan** is a strict set of rules that defines exactly what, when, and how you trade. It removes emotion from the equation.
SVG 1: The Pillars of a Professional Trading Plan
Section 1: The Mission and Routine
Your plan must start with defining your **Mission** (e.g., grow capital by X% consistently, achieve time freedom). Then, define your **Routine**.
Pre-Market Routine:
- Check Economic Calendar for High-Impact news (Red Folder).
- Determine the **Daily Bias** (Bullish, Bearish, or Ranging) on the Daily Chart.
- **Mental Check:** If I am tired, sick, or angry, **I DO NOT TRADE**.
Trading Hours:
- I only trade the high-volatility windows (e.g., **London/NY Overlap**).
- I do not open new trades during low volume/illiquid sessions.
Section 2: The Strategy (The Execution Rules)
This is where you define exactly what an **"A+ Setup"** looks like. If the setup doesn't match this list 100%, you do not click the button.
My "A+" Setup Checklist:
1. Market Structure: Is the H4 Trend aligned with my trade direction?
2. Location: Is price at a Key Institutional Level (Order Block, Supply/Demand Zone)?
3. Trigger: Did price break the M15 structure (CHOCH/BOS) confirming the shift?
4. Rule: No setup = No trade. Even if the market moves 100 pips without me, I do not chase it (Anti-FOMO rule).
Section 3: Risk Management (The Defense)
This is the most critical section. **This saves your account from blowing up.**
The "Hard" Rules for Capital Preservation:
- Risk Per Trade: **1% of Account Balance.** (No exceptions).
- Position Sizing: Must be calculated using the Lot Size Calculator to ensure 1% risk is respected.
- Max Daily Loss: **3%** (If I lose 3 trades, I stop for the day).
- Stop Loss (SL): Must be placed **structurally** *before* entering the trade. Never widen a Stop Loss.
- Risk-to-Reward (RR): Minimum **1:2** RR per trade. Verify this using the Risk & Reward Calculator.
Section 4: Trade Management and Protocol
Getting in is easy. **Getting out is hard**—Greed makes you hold too long; Fear makes you close too early.
Exit Rules:
- Breakeven: Move SL to Breakeven after price moves +1.5R in profit.
- Take Profit 1: Close 50% of the position at the next logical Resistance/Support level.
- Manual Close: If price forms a reversal pattern against me on H1, I close immediately. I don't "hope".
The "Disaster Protocol" (Psychological Guardrails)
| Scenario | Protocol |
|---|---|
| Losing Streak (3 losses in a row) | **Stop Trading.** Walk away for 24 hours. **No revenge trading.** |
| Winning Streak (3 wins in a row) | **Reduce Risk.** Cut risk to 0.5% per trade. **Overconfidence is dangerous.** |
Section 5: The Review (Journaling & Improvement)
A Trading Plan is a **living document**. You must measure and improve it constantly.
Every weekend, review your Trading Journal:
- Did I follow my plan this week? (Measure Discipline)
- Did I take trades that were not in my rules? (Measure Deviation)
- What mistake did I repeat? (Measure Error Rate)
SVG 2: The Trader's Commitment Contract
Final Thoughts
Printing this plan doesn't make you profitable. **Following it does.**
When you are about to take a stupid trade, read this plan. It will save you thousands of dollars. **Treat trading like a business, and it will pay you like one.** Monitor market flow via the Realtime Market Dashboard.
