Trading Psychology

Trading Plan

A written, predetermined set of rules for a trade — entry criteria, position size, stop-loss, profit target, and a deviation plan — created before emotions engage.

A trading plan is a written, predetermined set of rules for a trade — specifying entry criteria, position size, stop-loss level, profit target, and what to do if the urge arises to deviate — created in advance, with a clear head, rather than decided in the moment under emotional pressure.

See a full pre-trade checklist framework in How to Control Emotions While Trading F&O.