7 Steps to a Winning Trading Plan


When it comes to trading, having a winning plan is key. Without a plan, you are likely to make costly mistakes that can cost you money. So how do you create a winning trading plan? There are 7 steps that can help.

In this article, we will understand what a trading plan is and walk through each step of creating it.

Let's get started!

What is a trading plan?

The trading plan is a strategy that ensures traders are accountable and focused on their personal investment strategy. As soon as a competent broker is selected, a trader should start its development. In order to get the idea about forex brokers check cmtrading to be oriented in a choice of the reliable one

The trading plan sets conditions for entering trades, identifying markets where they can be profitable with limited risk, monitoring strategies along the way to make sure everything's going according to what was planned - and most importantly keeping track of how much money has been made or lost so far in order determine whether there’s any change necessary before moving ahead again. 

How to create a winning trading plan?

Here are the 7 steps we have highlighted that will lead you to the winning trading plan. 

1. Select the analytical approach

Traders use many different tools to help identify trade set-ups and narrow down their focus. The analytical approach answers the question "how do you find opportunities?" It could be a combination of price support or resistance, trend lines on charts, chart patterns, or Fibonacci ratios which tell us about future price movements relative to those now current ones. 

2. Restrict the number of markets you focus on

Limiting the number of markets you watch can help new traders understand how different each market is. You might focus on specific time frames or just one type for a more immersive experience with its nuances and movements.

3. Set the risks level

It is important that traders determine their risk tolerance before executing any trading plan. If they do not have control over the amount of money being risked, then everything else in place will fail.

The amount of risk you can take on any single trade is up for debate, but it is important that traders know their tolerance levels before they invest. If an investor has a 5% position and loses 1%, he should get out or reduce accordingly so as not to exceed this threshold in either case - even if things turn around later in the day. 

4. Select the trade setups

Traders often spend time on their trade setups, as it is at the core of all trading. There are many factors that together lead to higher probability trades and finding a setup can take some figuring out but this process should not be overlooked by anyone who wants success.

5. Think about your holding period

The types of traders who trade in different timeframes depend on how much they focus their attention. Scalpers and day-traders usually only look at short-term trades, while swing traders will hold onto deals for a few hours up to days. Long-term traders might commit themselves completely to one single trade lasting months.

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6. Plan how to handle losses

When a trader experiences their first losses, they should have rules to follow in order not to fall victim to the emotions that come with it. One way is setting an amount or percentage loss for when things get tough. 

7. Have a routine to stay on track

It is important to take stock of your trading performance and analyze the trades you have made during the week. Make adjustments if necessary based on how things are going, so that the next time around will be even more successful. It can help too with reviewing what went right or wrong in order to learn something new.


Trading can be profitable and exciting when you have a winning plan in place. By following these 7 steps, you will be on your way to creating a trading plan that works for you and helps you achieve your goals. As a trader in Nigeria, see hantec markets to begin trading.

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