Trading plan, journal and psychology
6 lessons
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- 11.1 Why you need a plan ✓ Completed
A trading plan is a short set of rules you write before the market opens. It decides what you trade, when, how much you risk and when you stop, so those choices are not made in the heat of a trade.
- 11.2 Keeping a journal ✓ Completed
A trading journal records every trade with its setup, reason, screenshot, result and how you felt. It is the only honest record of whether you followed your plan and whether the plan works.
- 11.3 Reading your own stats ✓ Completed
Four numbers from your journal tell you how a plan is doing - win rate, average win and loss in R, expectancy and maximum drawdown. Expectancy is the one that says whether the plan makes or loses money on average.
- 11.4 Revenge trading and overtrading ✓ Completed
After a loss it is tempting to win the money straight back. Revenge trades and overtrading break the plan when it matters most. A cooling-off rule and a daily loss limit stop a bad hour becoming a bad month.
- 11.5 FOMO, fear and moving stops ✓ Completed
Fear of missing out makes traders chase entries; fear of losing makes them cut winners early and widen stops on losers. Each one quietly changes the numbers your plan was built on.
- 11.6 Your routine ✓ Completed
A routine wraps your plan in the same steps every day - a pre-market checklist, a clear list of reasons not to trade, and a weekly review of the journal. This lesson ends with the Green belt mission.