How to Build a Trading Plan (And Why 95% of Traders Don't Have One)
Ask most traders what their plan is for the day ā and they'll stare back at you blankly.
"I'm going to watch the market and see what happens."
That's not a plan. That's hoping. And hope is not a trading strategy.
A real trading plan answers these questions before the market opens:
1. What am I trading today?
Define your watchlist. 2-3 tickers max. Know your setups in advance ā not in the middle of a move.
2. What are my key levels?
Mark your support, resistance, and high-volume nodes the night before. The market is always in context of prior price action.
3. What's my entry trigger?
"I'll buy when it looks right" is not a trigger. "I'll buy a break and retest of X level with confirmation on the 5-minute chart" ā that's a trigger.
4. Where is my stop?
Defined before entry. Non-negotiable. If you can't identify where you're wrong, you shouldn't be in the trade.
5. What is my target?
At minimum, 2x your stop distance. Know your exit before you enter.
6. How much am I risking?
1-2% of account. Calculated. Not emotional.
7. What time am I NOT trading?
Lunch chop (12-2 PM EST), news events without a plan, and whenever you're not mentally sharp.
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A plan without execution is just a wish. Execution without a plan is gambling.
Inside The Embassy, every trade signal comes with a full plan ā entry, stop, target, and context. We model what disciplined trading looks like in real time.
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