How to Create a Simple Trading Plan for Prop Firms
A clear trading plan guides your decisions, keeps you disciplined, and increases your chances of passing prop firm challenges.
Key Components of a Trading Plan
- Market and Instruments: Specify what markets and instruments you will trade.
- Entry and Exit Rules: Define your criteria for entering and exiting trades.
- Risk Management: Set maximum risk per trade and stop loss rules.
- Trade Frequency: Decide on daily or weekly trade limits.
- Profit Targets: Define realistic profit goals for each trade.
- Journaling: Commit to recording every trade with rationale and outcome.
How to Develop Your Plan
- Start simple, focus on high-probability setups.
- Test your plan on demo or backtesting.
- Adjust based on performance and feedback.
Benefits of a Trading Plan
- Improves consistency.
- Helps control emotions.
- Provides a clear roadmap during challenges.
Tips for Staying on Track
- Review and update your plan regularly.
- Stick to the plan during live trading.
- Learn from mistakes, avoid impulsive changes.
A simple, well-defined trading plan is a key asset for funded traders.