How to Build a Trading Plan — A Beginner's Template

"A goal without a plan is just a wish." — Antoine de Saint-Exupéry

Most beginners trade reactively — they see a setup, they take it. Professionals trade from a written plan. Here's a template you can copy and fill out today.

Why you need a trading plan

A plan forces decisions before emotions hit. When the market is moving fast, you don't think — you execute the plan. Without one, you'll improvise, and improvisation under stress is how accounts die.

The 7-section template

1. Markets and timeframes

What will you trade? On what timeframe?

Markets: e.g., US large-cap stocks, BTC/USDT, EUR/USD
Timeframe: e.g., daily chart for decisions, hourly for entries
Session: e.g., NY open, London open

2. Setup criteria

What specific conditions trigger a trade? List every condition.

Trend alignment (e.g., price above 50 EMA)
Pattern (e.g., bull flag)
Confirmation (e.g., RSI > 50, volume spike)

If a setup doesn't meet all conditions, no trade.

3. Entry rules

Exact price/action to enter.

Entry trigger: e.g., break of previous candle high
Order type: market, limit, stop
Position size: use the position size calculator

4. Stop loss

Where will you exit if wrong?

Method: ATR multiple, structure, or fixed %
Calculator: stop loss calculator
Rule: never move the stop away from price

5. Take profit

Where will you exit if right?

Target: based on RR ≥ 2 (use the RR calculator)
Scaling: full exit, or partial at 1R then runner
Trailing: optional, after price moves in your favor

6. Risk rules

Max risk per trade: 0.5%–1%
Max daily loss: 3% (then stop trading for the day)
Max weekly loss: 6% (then stop trading for the week)
Max open positions: 3

7. Journaling

After every trade, record:

Setup, entry, stop, target
Result (win/loss, P&L)
What went well, what went wrong
Emotional state (1-10)

Review weekly. Patterns will emerge — your edge lives in those patterns.

Example (filled in)

Markets: BTC/USDT, daily chart Setup: Price above 50 EMA, RSI > 50, pullback to 20 EMA Entry: Limit at 20 EMA, 1% risk Stop: 1.5 × ATR below entry Target: 2R minimum Daily loss limit: 3% Journal: Notion template, reviewed every Sunday

Common planning mistakes

Too vague: "Buy when trend is up" isn't a plan. Specify everything.
Too complex: 20 conditions means you'll never trade. Start with 3-5.
No review: A plan you never review is dead. Weekly review minimum.

What to do right now

Copy the 7-section template
Fill it in — even roughly
Trade it on paper for 2 weeks (see /paper when live)
Review, refine, repeat

A mediocre plan executed consistently beats a brilliant plan executed randomly.