Your trading plan should fit on one page

A trading plan can become an impressive document that nobody opens during a session. For learning, begin with a simpler question: could another person understand your proposed decision from one page of notes?

One page is an editorial constraint, not a rule that all real trading systems should fit a template. The point is to expose missing reasoning before complexity makes it harder to see.

First, describe the context

Record the instrument, timeframe and the structure you can actually see. Avoid “looks bullish” as the whole explanation. A description such as “three visible higher swing lows on this timeframe” is easier to examine and disagree with.

Include the time of the observation. If the example is historical, say so. Later candles should not quietly enter an explanation written as though they were already known.

Then, name the invalidation

Write what would make you change the interpretation. That might involve a price area, a change in structure or the expiry of a scenario. The condition needs to be specific enough that your later review can tell whether it occurred.

An invalidation idea is not automatically an executable exit instruction. The product, order type and available execution still need separate consideration. A stop price and a guaranteed fill are not interchangeable.

Make the exposure visible

Write the intended size, how you calculated the planned price risk and what costs or execution assumptions the arithmetic leaves out. For forex or other contracts, record the actual specification source. Do not label a generic calculator’s whole-unit output as lots.

A fictional whole-unit example uses entry 100, stop 95 and 10 units: 50 of planned price risk before costs. Change one input and recompute. The example is only arithmetic; it does not suggest that the setup, size or budget is suitable.

Choose the review question in advance

“Did I make money?” belongs in the outcome field. Add a question about the process: did the action match the recorded size, did the interpretation change after new information, or did urgency appear after a previous result?

Plan clear hai, ya bas chart colourful hai?

A colourful chart is allowed. An unexplained decision is the problem this worksheet is meant to reveal. Following the page cannot validate a strategy or prevent a loss.

Try the page on an old chart

Hide the later candles, fill the four fields, then reveal the next section. Review the explanation without editing the original note. Use the checklist to find missing inputs and the journal to keep the record.

Further reading

CME Group: risk management and your trade plan.

Educational content only. Trading involves substantial risk of loss. See the full disclaimer.