This article is part of our comprehensive trading course, Master the Art of Trading, designed to guide you step-by-step through market mastery.
“If you don’t have a plan, you’ll become part of someone else’s.”
In trading, this is not just a quote — it’s a warning.
In our last discussion, we explored how emotions like greed, fear, and overconfidence can destroy even the best strategies. If your mind is not trained, no setup will work for long.
That’s why the next essential step is this: Create a solid Trading Plan — your personal rulebook.
Imagine entering a battlefield without a strategy. That’s exactly what trading without a plan looks like. A trading plan removes emotion, enforces discipline, and gives you confidence in the middle of chaos.
Why You Need a Trading Plan
Imagine entering a battlefield without a strategy. That’s exactly what trading without a plan looks like. A trading plan removes emotion, enforces discipline, and gives you confidence in the middle of chaos.
What is a Trading Plan?
A trading plan is a written document that outlines:
- When you trade
- What you trade
- Why you take a trade
- How you manage risk
- When you exit
How to Build Your Personal Rulebook
Here’s a simple but powerful template you can customize for your own trading:
1. My Trading Style
- Intraday / Positional / Swing / Option Selling / Algo / Screener-based
- Timeframes I use: (e.g., 15min, 1hr, Daily)
2. Instruments I Trade
- Nifty / Bank Nifty / Stocks / Commodities / Options
3. Entry Rules
I will only enter a trade when:
- My indicator gives a signal
- Volume supports the breakout
- There is no news event or high volatility
- Candle closes above/below my defined level
4. Exit Rules
I will exit when:
- Target hits (X%)
- Stoploss hits (Y%)
- Reversal candle appears
- End of my trading session (no overnight risk)
5. Risk Management
- I will risk only 1-2% of my capital per trade
- My position size will depend on stoploss size
- I will not revenge trade under any condition
6. Journal & Review
I will record every trade with:
- Entry reason
- Exit reason
- Profit/Loss
- I will review my trades every weekend
7. My Golden Rules
- Stick to the plan.
- No trade is better than a bad trade.
- Focus on process, not profit.
- Trade what you see, not what you feel.
Final Words
Your Trading Plan is your GPS in a jungle of distractions. If you ever feel lost, you don’t need to rely on emotion — you just follow your rules.
And remember — as we learned in the Trading Psychology article — discipline beats intelligence in the long run. Smart traders make money, but disciplined traders keep it.
Now it’s your turn.
Start writing your rulebook. Keep it short, realistic, and personal. Print it out. Stick it on your wall. Read it daily.
Because without rules, the market will rule you.