Winning Trading Plan Creation Guide
Complete manual for building consistent trading strategies and disciplined trade execution
目次
Skills You'll Develop from This Guide
Document entry and exit criteria to eliminate emotional decisions
Comprehensive judgment combining chart analysis and economic indicators
Psychological management techniques to prevent revenge trading and overtrading
Steady growth through PDCA cycle: Record, Analyze, Improve
Why Do You Need a Trading Plan?
Fatal Mistakes Made by 95% of Traders
- ❌ Entering trades "on a hunch" and holding without reason
- ❌ Doubling lot size after losses to recover (revenge trading)
- ❌ Taking profits immediately while holding losses (averaging down)
- ❌ Forgetting economic releases and suffering major losses
- ❌ Repeating the same mistakes (not keeping records)
Loss rate for individual investors trading without a plan
(Studies show 60-80% range)
Average profitability of traders with a trading plan
Median time for new habits to form
(Research: 59-66 days, individual variation)
Create Your Own Trading Plan
Choosing Appropriate Leverage
Excessive Leverage Common with Offshore Brokers
Offshore brokers often offer extremely high leverage like 1:500 or 1:1000, which is extremely dangerous for beginners. High leverage causes large losses from small price movements and significantly increases the risk of account blowout.
Dangers of High Leverage
- ❌With 1:1000 leverage, a mere 0.1% price movement can wipe out 100% of margin
- ❌Margin call risk is extremely high, leading to frequent stop-outs
- ❌Psychological pressure increases, making calm judgment impossible
Recommended Leverage: 1:50 to 1:100
Many experienced traders use leverage between 1:50 and 1:100. This range provides sufficient profit opportunities while maintaining appropriate risk management.
1:50 (Conservative)
- • Optimal for beginners
- • Minimum margin call risk
- • Lower emotional stress
- • Sufficient trading with 1% risk
1:100 (Standard)
- • Recommended for intermediate traders
- • Balanced setting
- • Good balance of profit opportunities and risk
- • Most recommended setting
Above 1:100 (Caution)
- • For advanced traders
- • Strict risk management required
- • Risk below 1% recommended
- • Above 1:200 not recommended
Relationship Between Leverage and Risk Management
Key Principle
Even with high leverage, keep risk per trade at 1-2%.Leverage is used when determining position size, but actual risk is controlled by stop loss placement and lot size.
Example: Account balance $10,000, Leverage 1:100
- • 1% risk = $100
- • Stop loss set at 50 pips for USD/JPY
- • Appropriate lot size: ~0.10 lots (safe even with 1:100 leverage)
- • Even with high leverage, risk is fixed at 1%
Leverage Selection Checklist
- Start with 1:50 if you're a beginner
- Use 1:100 as standard for intermediate traders
- Don't use above 1:200 (except prop trading)
- Maintain 1-2% risk per trade even with high leverage
- Use no more than 30% of available margin to avoid margin calls
Combining Technical and Fundamental Analysis
The "Candlestick Dependency" Trap Many Traders Fall Into
Many traders make trading decisions based solely on candlestick patterns, but this is a major pitfall. Successful traders always combine multiple elements.
Technical Analysis
Important for determining entry/exit timing
- ▶Trend Confirmation:Understand the big picture using daily and 4-hour charts
- ▶Support/Resistance:Identify important price levels
- ▶Indicators:Confirm with RSI, MACD, moving averages
Fundamental Analysis
Determines trend direction and market bias
- ▶Economic Indicators:Impact of NFP, GDP, CPI, etc.
- ▶Central Bank Policy:Interest rate trends, QE direction
- ▶Market Sentiment:Risk-on/risk-off judgment
💡 Successful traders use fundamentals to determine direction and technicals to find entry points. Combining both enables more reliable trading decisions.
Real Example: Comprehensive USD/JPY Trade Analysis
Technical Analysis
- • Daily: Uptrend continuing (20MA > 50MA > 200MA)
- • 4-hour: Support confirmed at psychological level 150.00
- • RSI: 45 (not oversold)
Fundamental Analysis
- • US: Rate hikes continuing (USD bullish factor)
- • Japan: QE continuing (JPY bearish factor)
- • Interest rate differential: Expanding (USD/JPY bullish factor)
Comprehensive Judgment
Buy Entry: Long at 150.20
Stop Loss: 149.70 (-50 pips)
Take Profit: 151.20 (+100 pips)
Strength of Setup: ★★★★☆ (4/5)
Emotion Control and Psychological Management
Emotion Checker
What is your current emotion?
What is your current trading situation?
💡 Tip: Always use this checker before and after trades. Recording emotional changes helps you see your patterns.
Revenge Trading Prevention Rules
Always Take 30-Minute Break After Loss
Set a timer, step away from your PC, take deep breaths. Resume market analysis only after regaining composure.
Set Maximum Daily Loss Amount
When you reach 3% of account balance, force close all trading for the day. Start fresh tomorrow.
Fix Lot Size
"Doubling down" is the path to ruin. Always maintain planned position size regardless of situation.
Signs of Overtrading
Warning Signs
- • 10+ trades per day
- • Weak entry rationale
- • Trading "because you're bored"
- • Ignoring spread costs
- • Not reviewing trade history
Solutions
- • Limit to maximum 3 trades per day
- • Only trade A-grade setups
- • Set specific trading hours
- • Practice on demo account
- • Create hobby time
How to Write and Use a Trade Journal
10 Items to Record Every Time
Before Trade
- 1Date/time, currency pair
- 2Entry rationale (technical + fundamental)
- 3Plan (entry, SL, TP)
- 4Risk amount, reward-to-risk ratio
- 5Market environment (trend, volatility)
After Trade
- 6Actual result (win/loss, pips gained)
- 7Did you execute according to plan?
- 8Emotional changes (anxiety, fear, greed)
- 9Improvements, lessons learned
- 10Screenshot (chart)
Sample Trade Journal Entry
2025/01/15 10:30 | EUR/USD
【Entry Rationale】
T: 4H uptrend, bounce from 1.0500 support
F: ECB rate hike expected, US CPI below forecast
【Plan】
Buy: 1.0520 | SL: 1.0470(-50p) | TP: 1.0620(+100p)
Risk: $100 | R:R = 1:2
【Result】
Win +95 pips (manually closed 5 pips before TP)
【Reflection】
Executed according to plan, correct to not be greedy for last 5 pips.
Continue to maintain calm judgment next time.
5 Traps That Traders Fall Into
Trap 1: Misidentifying Triple Top/Bottom Patterns
Traders often focus on pattern recognition but frequently jump to conclusions on incomplete patterns.
Solutions
- ✓ Always confirm neckline break
- ✓ Confirm volume (tick volume in FX)
- ✓ Confirm position on higher timeframes
Trap 2: Underestimating Economic Indicators
Over-relying on technical analysis and ignoring NFP or FOMC, leading to major losses.
Solutions
- ✓ Check economic calendar every morning
- ✓ Close positions 30 minutes before major releases
- ✓ Manage indicator trading as separate strategy
Trap 3: Over-concentration on JPY Pairs
Concentrating on USD/JPY, EUR/JPY, GBP/JPY increases correlation risk.
Solutions
- ✓ Limit JPY pairs to maximum 2
- ✓ Consider EUR/USD, GBP/USD
- ✓ Develop habit of checking currency correlation table
Trap 4: Over-reliance on Scalping
Preference for "small wins" leads to over-reliance on scalping, but spread costs eat profits.
Solutions
- ✓ Aim for minimum 10+ pips profit (5 pips acceptable on tight-spread majors)
- ✓ Target at least 3x spread, ensure risk-reward ratio of 1:1.2+
- ✓ Also utilize 4-hour charts and above
Trap 5: Misunderstanding Cut Losses, Let Winners Run
Misunderstanding "cut losses, let winners run" and taking profits immediately while holding losses.
Solutions
- ✓ TP must be at least 1.5x SL
- ✓ Utilize trailing stops
- ✓ Use partial closes to reduce psychological pressure
~2 Month Challenge: Path to Habit Formation
Week 1-7
Foundation Building
- • Create trading plan
- • Start trade journal
- • Daily review once per day
Week 8-14
Practice and Adjustment
- • Execute trades according to rules
- • Add emotion tracking
- • Conduct weekly reviews
Week 15-21
Habit Establishment
- • Automatic execution
- • Performance analysis
- • Set next goals
💡 Secret to Success:Don't seek perfection, prioritize consistency first. By accumulating small successful experiences, confidence and skills naturally develop.
Create your trading plan now and take the first step toward becoming a profitable trader