The Trading Plan: Your Written Set of Rules
Risk warning: No plan means random trades and fast losses. This is education, not financial advice.
A trading plan is a short list of rules you write before you trade. It tells you when to enter, where to place stops, and when to walk away.
| Plan line | Write this |
|---|---|
| Pair | EUR/USD |
| Setup | Uptrend + pullback to support |
| Entry | Candle close above support |
| Stop | 20 pips, 1% ($0.10) |
| Take profit | 40 pips, 1:2 |
| Daily rule | Stop after 2 losses |
Demo example — not a signal.
Why you need it
Without a plan you trade feelings. Fear makes you exit early. Greed makes you hold too long.
A plan removes decisions in the heat of the moment.
What goes in a simple plan
- Market — which pairs? (for example EUR/USD in London 8am–5pm WAT)
- Setup — what must you see? (for example uptrend + pullback to support)
- Entry/Exit — where to enter, stop loss, take profit. See Entry and Exit Rules.
- Risk — 1% per trade. See The 1% Rule.
- Hours — when you trade in WAT. See Trading Sessions and WAT.
- Stop for the day — for example "stop after 2 losses".
Keep it to one page. Trade it on demo two weeks, then cent live with $10. See How to Start Forex with $10 from Zero.
Bottom line: Write one-page plan — pair, setup, 1% risk, stop, daily limit — and trade it, or you risk feelings making your trades. Related guides: Starting Forex as a Beginner.