Forex Made SIMPLE
Trading Plan
A trading plan is a structured set of rules and guidelines that a trader follows to make informed decisions in the financial markets. It outlines key elements such as entry and exit strategies, risk management rules, trading goals, and the specific conditions under which trades will be taken. Having a trading plan helps eliminate emotional decision-making, keeps traders disciplined, and provides a clear roadmap for consistent performance. Whether you're a beginner or experienced trader, a well defined trading plan is essential for long term success.
TRADE LIKE A PRO
Trading Plan
What is a trading plan and why is it important?
A trading plan is your personal roadmap in the world of forex. It keeps your emotions in check, defines your strategy, and provides structure to your decisions. Without one, you're gambling not trading.
At Forex Made Simple, we teach all our students that consistency, not luck, is what builds long-term success. And that consistency starts with a written plan.
Top Reasons You Need a Trading Plan
1. Emotion Control
Trading without a plan leads to emotional decisions like chasing losses or entering trades out of FOMO. A plan keeps you grounded and disciplined.
2. Consistency = Profitability
Following the same rules every day allows you to measure what’s working and what’s not. This is how professional traders grow and refine their edge.
3. Risk Management
A good plan outlines how much you’re willing to risk, so you never over leverage or blow your account from one bad trade.
4. Accountability
A trading plan helps you track your actions and performance, which makes you accountable to yourself. Review your journal weekly and adjust your plan as needed.
5. Faster Learning
Beginners who use trading plans learn from their mistakes faster. Instead of guessing why something worked or failed, you’ll have the data and structure to improve.
Example Trading Plan
1. Trading Style
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Type: Day Trading (no overnight positions)
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Timeframe: 15-minute charts
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Goal: 10–20 pips per trade
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Session: London & New York open
2. Tools Needed
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Platform: TradingView (for analysis & demo trading)
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Broker: A regulated broker with low spreads
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Indicators: Support & Resistance, 50 EMA, RSI (optional)
3. Entry Rules
Only take a trade if all 3 are true:
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Price touches key support or resistance
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Reversal candle forms (like a pin bar or engulfing)
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There is at least a 1:1 risk-to-reward setup
Example: Support is broken → wait for a retest → enter on bearish candle
4. Risk Management
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Risk per trade: Max 1% of account balance
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Stop Loss: Always use it
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Take Profit: Aim for 1:1 or higher
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Daily Loss Limit: Max 3 trades or 3% loss per day
5. Daily Checklist
Mark support & resistance
Avoid trading during high-impact news
Trade during main sessions only
Record every trade in your journal
6. Emotions & Psychology
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Stay calm. If you lose, walk away.
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Never chase the market.
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Review your trades every Friday to spot mistakes and wins.
