How to Create a Trading Plan: Template and Examples

A trading plan is a written document that defines your strategy, risk management, and rules. Trading without a plan is gambling.

Why You Need a Plan

Without a Plan	With a Plan
Emotional decisions	Rules-based decisions
Inconsistent sizing	Fixed position sizing
Revenge trading	Strict loss limits
Overtrading	Defined entry criteria
No clear goals	Measurable objectives

Trading Plan Template

1. Goals

Goal Type	Example
Return target	10-20% per year
Risk limit	Max 10% drawdown
Time commitment	1 hour per day for analysis
Learning goal	Master one strategy per quarter

2. Markets You Trade

Market	Why
Bitcoin / Ethereum	High liquidity, volatility
S&P 500 ETFs	Trend-following opportunities
Forex majors	Lower volatility, consistent

3. Strategy

Element	Description
Timeframe	4-hour / daily charts
Entry criteria	Breakout above resistance with volume
Exit criteria	Trailing stop or target hit
Filters	RSI above 50 for long trades

4. Risk Management

Rule	Value
Max risk per trade	1% of account
Max open positions	3 at once
Max daily loss	3% of account
Max weekly loss	6% of account
Stop loss placement	Below recent swing low
Risk-reward minimum	1:2

5. Entry Rules

Criterion	Condition
Trend	Price above 200 MA
Pattern	Flag or triangle breakout
Volume	Above 20-day average
RSI	Between 40 and 70
Time	No entries within 1 hour of news

6. Exit Rules

Exit Type	Condition
Take profit 1	1:2 risk-reward (50% position)
Take profit 2	1:3 risk-reward (50% position)
Stop loss	2× ATR below entry
Trailing stop	Activate after 1:1 gain

7. Daily Routine

Time	Task
Morning	Check overnight moves, news calendar
Pre-market	Identify key levels, set alerts
Trading hours	Monitor positions, avoid FOMO
Evening	Review trades, update journal

8. Review Process

Frequency	Review
Daily	Log every trade in journal
Weekly	Review win rate, risk-reward, mistakes
Monthly	Analyse which strategies work
Quarterly	Adjust plan based on performance

Example Trade Entry Form

Field	Value
Date	2026-07-14
Asset	BTC/USD
Direction	Long
Entry	$58,200
Stop loss	$56,800
Target 1	$60,800
Target 2	$63,000
Position size	0.5 BTC ($29,100)
Risk	$700 (1.4%)
Setup	Breakout above resistance with volume
Result

Bottom Line

A trading plan removes emotion from your decisions. Write down your goals, strategy, risk rules, and daily routine. Review and update it regularly. The plan won’t guarantee profits, but it guarantees consistency — which is the foundation of long-term success. Trade the plan, not your feelings.