Lesson 17: Creating Your Trading Plan & Journal

Part of Module 5: The Pillars of Pro Trading - Risk and Mindset

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Introduction: From Guesswork to a Business

So far, you've learned how to analyze the market and manage your risk. But how do you combine all of this into a consistent process? The answer is with two essential documents: your Trading Plan and your Trading Journal. These tools are what transform trading from a hobby into a structured business.

The Trading Plan: Your Professional Rulebook

A trading plan is a written set of rules that defines every aspect of your trading. It is your personal business plan, designed to remove emotion and guesswork from your decisions. You create the plan when you are calm and analytical, and your only job when the market is open is to execute the plan flawlessly.

Core Components of a Trading Plan

Your plan must answer these questions with absolute clarity:

• What currency pairs will I trade?
• What timeframes will I analyze?
• What is my exact entry setup?
• What is my exit strategy (for both wins and losses)?
• What is my risk management rule (e.g., the 1-2% rule)?

The Trading Journal: Your Feedback Loop for Improvement

If the trading plan is your rulebook, the trading journal is your performance review. It's where you record every trade you take to track your progress, identify patterns, and learn from your mistakes.

What to Record for Every Trade

For every single trade, you should log:

• Date, Time, and Currency Pair
• Your Entry, Stop Loss, and Take Profit prices
• The final Profit or Loss
• Most Importantly: A screenshot of the chart and a note on why you took the trade and how you were feeling.