Forex Term

Trading Plan

A written set of rules for how and when you trade.

A trading plan is a written framework covering which markets you trade, your entry and exit rules, position sizing, and risk limits. It turns trading from impulsive guesses into a repeatable process and helps you stay disciplined when emotions run high during live trades.

Example

A trading plan might state you only trade EUR/USD during the London session with a 1:2 risk-reward.

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Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.