Write a trading plan (one page)
The checklist that answers what, when, how much and when to stop, before emotions get a vote.
5 min read
A trading plan is a short set of rules you follow every time. It doesn't need to be complicated. It needs to be written down and followed.
Your one-page plan
- What I trade: a short watchlist (5–10 liquid stocks or ETFs).
- When I trade: for example the first two hours after the open. No trading out of boredom.
- My setup: the exact conditions that have to be true before I enter.
- My risk: 1% per trade, stop placed before entry, never moved further away.
- My exits: targets at 1R, 2R, 3R; stop to break-even after the first.
- My daily limit: stop trading for the day after losing 3R (or 2 losses in a row).
- My review: log every trade, and review the week every weekend.
Pre-trade checklist
- Is this my setup, or am I bored?
- Is it with the higher-timeframe trend?
- Where is my stop, and what's my size?
- Is the first target at least 1R away, with room before the next level?
Key takeaways
- ✓Write your rules down.
- ✓A daily loss limit protects you from your worst day.
- ✓Run a quick checklist before every entry.
Quick check
You've hit your daily loss limit by 10:30am and see a perfect setup. What does your plan say?
Put it into practice
A free Yuppie Trade account includes the trade journal and Trader Desk. Pro adds the pre-trade checklist and a daily loss lock that enforces your limit.
Education only, not financial advice. Trading involves substantial risk of loss.