Why use a trade plan template
Most review problems start before entry, when plan details stay in your head instead of in your journal. A template keeps fields consistent so you can compare process quality across trades in your weekly review.
Trade plan template
- Market context. Note the ticker, strategy type, and market condition you are trading.
- Setup criteria. Write the pattern or trigger that qualifies the trade now.
- Risk budget. Record max planned loss and the position-size rule you are using.
- Entry and invalidation. Define planned entry, invalidation condition, and what cancels the setup.
- Profit and management plan. Add target logic, time-based exits, and adjustment rules if the trade is challenged.
- Review tags and notes. Add tags and one sentence about execution quality after the position is opened.
Suggested journal fields
| Field | Purpose | Example |
|---|---|---|
| Setup name | Groups similar ideas for review | Bull put spread support retest |
| Trigger condition | Clarifies entry timing | Close above prior day high |
| Risk cap | Converts plan into hard limits | Max $200 loss per trade |
| Invalidation | Defines when thesis is wrong | Break below support on volume |
| Management rule | Reduces reactive changes | Scale out at 40% max profit |
| Post-entry note | Improves retrospective analysis | Slippage was higher than planned |
How this fits your workflow
Use this template before every order, then move into the entry checklist for fill details and the adjustment checklist for mid-trade decisions. This sequence keeps the full trade lifecycle documented.
Process tip: If you skip a field, note why. Missing fields can reveal where your process breaks under pressure.
Common mistakes to avoid
- Writing broad rules like "manage as needed" that cannot be reviewed later.
- Changing size after entry without recording the new risk cap.
- Skipping invalidation conditions and relying only on targets.
- Using different field names each week, which makes comparisons harder.
Related guides
Pair this template with the risk plan checklist, position sizing checklist, and performance review guide.
FAQ
Should I create a different template for each strategy?
Keep one base template for consistency, then add one or two strategy-specific fields if needed.
How long should a trade plan take to complete?
A concise plan should take a few minutes. The goal is clarity and consistency, not long narratives.