He is a Full-time trader and Trading Mentor @ Findependence Trading Academy, with over 18 years of hands-on experience in the stock and forex markets. His journey from being a working professional to achieving financial independence through trading has inspired hundreds of aspiring traders to take control of their financial future.
His trading style revolves around identifying high-probability swing setups in equities and executing precise intraday trades in the forex markets. He treats trading like a business, where rules, clarity, and risk limits aren’t optional—they’re essential. He’s trained over 100+ traders through personalized coaching and structured programs, focusing not just on strategy but on building the mindset and systems that lead to long-term success.
A strong believer in keeping trading simple and practical, He shares real-world lessons drawn from market wins, losses, and years of evolving with changing conditions. He is also the author of “Getting Started with Technical Analysis” and a creator of custom TradingView indicators designed to give traders an edge.
When he’s not charting or mentoring, you’ll find him enjoying a game of Table Tennis.
Table of Contents
The Power of a Trading Plan: How to Create and Stick to One
I still remember one of my earliest trades in 2006. entered a stock purely because it was going up. didn’t have an entry rule, a stop loss, or any idea where I’d exit. I was new, overconfident, and riding high on luck.
Until I wasn’t.
The market turned. I froze. watched my profit vanish and then some. didn’t know what to do because I didn’t have a plan.
That one painful trade taught me what no textbook or course ever did:
A trading plan is not optional—it’s survival.
So in this blog, I want to speak to you not just as a mentor, but as a trader who has fallen, learned, and rebuilt—with a plan at the center of it all.
Let’s explore:
- What a trading plan is (and isn’t)
- What to include in your plan
- How to stick to it (even when emotions flare up)
- And why it may just be the most important tool in your journey
1) What Is a Trading Plan?
A trading plan is a written document that defines how, when, and why you trade. It outlines:
- Your strategy
- Your risk rules
- Your trade management
- Your personal boundaries
But more than that, it’s a commitment to yourself—a way to trade with clarity instead of chaos.
Without a plan, you’re trading based on gut feel, noise, and emotion. That’s gambling, not trading.
2) Why You Need a Trading Plan (Especially If You’re New)
Here’s what happens when you trade without a plan:
- You chase random setups
- You increase position sizes out of greed
- You exit early out of fear
- You jump from one strategy to another
- You second-guess your every move
Sound familiar?
On the flip side, here’s what a plan does:
✔️ Removes impulsive decisions
✔️ Brings consistency
✔️ Helps you evaluate what’s working
✔️ Builds confidence through structure
It’s like driving with a GPS. You still have to navigate traffic (market conditions), but at least you won’t get lost every five minutes.
“If you fail to plan, you are planning to fail.”
— Benjamin Franklin
3) What to Include in Your Trading Plan
After mentoring hundreds of traders and refining my own approach for 18 years, here’s what I believe every trading plan should cover:
1. Your Trading Goals
Ask yourself:
- Why am I trading?
- What do I want to achieve in 6 months, 1 year, and 5 years?
- Is my goal income, growth, or both?
Your plan must align with your time availability, capital, and emotional tolerance.
2. Markets and Instruments
- What will you trade? (Stocks, Forex, Indices, Commodities)
- Are you focused on intraday or swing trades?
- Will you trade large-cap stocks or mid-cap? Majors or exotic pairs?
Stick to what you understand. Avoid trading everything under the sun.
3. Trading Timeframes
- What timeframe will you analyze?
- What will you use for execution vs. confirmation?
Example: You might analyze the 4H chart and execute on the 1H.
Clarity in timeframe avoids analysis paralysis.
4. Setup and Entry Criteria
Define your setups like a checklist:
- Trend? Directional bias?
- What indicators or patterns?
- Where is your entry trigger?
If it’s not in your plan, don’t trade it.
5. Risk Management Rules
This is the backbone of your plan:
- How much % of capital do you risk per trade?
- What’s your Risk:Reward minimum? (1:2? 1:3?)
- How many open positions will you allow?
I teach every student this first: Protect your capital like your life depends on it—because your trading career does.
6. Exit Rules
- Where is your stop loss?
- Where will you take partial or full profits?
- What happens if price consolidates?
Many traders focus only on entries. But exits are what define profits.
7. Daily Routine
- When will you analyze charts?
- When will you place trades?
- When will you journal?
A trading plan isn’t just about trades—it’s about your behavior.
8. Psychology Triggers
Include a personal section:
- What emotions derail your trades?
- How will you avoid revenge trading?
- How do you reset after a loss?
Knowing your weaknesses is strength. Write them down.
4) Example Snippet from My Trading Plan
Here’s an excerpt from one of my own swing trading templates:
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Strategy: Trend-Pullback
Timeframe: Entry on 1H, Confirmation on 4H
Setup: Price above 20 EMA, RSI between 40–60, bullish engulfing
Entry: Break of candle high after confirmation
Stop: Below last swing low or 1.5x ATR
Target: 2R minimum, scale out at 1R
Risk: 1% of capital per trade
Journal: Log trade within 30 minutes after entry
Rules: No trading during news hours, No FOMO setups
Nothing fancy. But incredibly effective.
This plan has helped me say no to hundreds of bad trades—and that, ironically, is what improved my results the most.
5) The Hard Part: Sticking to Your Plan
Creating a plan is easy.
Sticking to it when your emotions are screaming “BREAK IT!”—that’s the real test.
Here’s what helps:
1. Print it. Keep it visible.
Tape it next to your screen. Your plan shouldn’t live inside a folder you never open.
2. Journal your trades
Each time you break the plan, write down why. Over time, patterns emerge.
3. Reward discipline, not just results
Even if a planned trade results in a loss, give yourself credit. The goal is consistency.
4. Review weekly
Each weekend, ask:
- Did I follow my plan?
- Where did I slip?
- What can I refine?
Self-review keeps your plan alive.
5. Accept that no plan is perfect
You’ll tweak and evolve your plan as you grow. That’s a sign of maturity—not failure.
6) Common Mistakes Traders Make with Their Plans
1. Making it too complicated
Keep it simple. You’re not writing a thesis. You’re writing a tool you’ll actually use.
2. Never updating it
The market changes. So should your plan. Review quarterly.
3. Copying someone else’s plan
What works for someone may not work for you. Your plan must reflect your personality, schedule, and capital.
7) A Word of Encouragement
If you’re reading this and thinking, “I’ve been trading without a plan,”—don’t beat yourself up. Most traders start that way. So did I.
The good news?
You can create your edge starting today.
Write down your current setups. Set a daily review time. Track your trades. Protect your risk.
Start small. But start with intention.
8) Final Thoughts: Your Plan Is Your Anchor
Trends change. News breaks. Indicators fail.
But your plan? That’s your anchor in the chaos.
It brings calm to the storm. & It gives you clarity in confusion. It helps you trade with purpose, not emotion.
So write it. Live it. Refine it.
And over time, your plan won’t just guide your trades—it will shape you into the disciplined, confident trader you set out to become.
If you’re looking to sharpen your trading skills, consider enrolling in forex trading classes. These courses will help you build a solid foundation, enabling you to craft a strategy that aligns with your goals and risk tolerance.
