As you probably well know, I can’t stop talking about how crazy the market is these days with great trade setups everywhere we look…
Almost every morning during my Premarket Prep, I have a list of setups like a mile long to go through…
And I’m over the moon about it!
But as I said yesterday, as we face a firehose of trading opportunities, it’s never a bad idea to pause and refresh what we already know or learn something new.
One thing that never gets old when it comes to preparing for a big trading day, or days, is having a solid trade plan.
Today, I want to discuss something that is truly a no-brainer for trading success: a trade plan.
If you’re looking for consistency and growth in your trading journey, this is a must-have tool in your arsenal.
Table of Contents
Why You Need to Have a Trade Plan
A lot of people ask, “What exactly goes into a trade plan?” or “How do I even start building one?”
When I talk about a trade plan, I like to use two terms:
Building the Case:
Think of yourself as a detective. You’re investigating a stock, trying to decide if it’s worth trading. With over thousands of publicly traded stocks, you need a system to focus on the one or two best plays for your account size and strategy.
The Recipe:
This would be a checklist that guides your trade step-by-step.
You can use criteria like:
- Is it an earnings winner?
- Is it a breakout stock?
- Are the fundamentals strong?
- Is it a former runner?
- Is it a low-float stock?
By checking these boxes, you’re not just guessing—you’re finding a rationale for why this trade makes sense.
What to Include in Your Trade Plan
Here’s what goes into a great trade plan:
The Ticker and Price:
What stock are you watching, and at what price do you plan to enter?
The Why:
What’s the catalyst, pattern, or reason you’re trading it? Look at those boxes you checked.
The Pattern:
Are you trading breakouts, VWAP holds (one of my favorites), or some other pattern?
Write down as much detail as possible.
Put each trade on a separate index card if that works for you…That’s what I used to do!
Or type it up in a Word or Google doc on your computer. Just make sure all the information for each stock has its own section so you won’t be distracted when it comes to making the trade.
Entries, Exits, and Discipline
This is where discipline comes in. Your plan needs to include:
Entry Point:
Where you’ll buy or short.
Profit Goal:
How much are you looking to make?
Stop Loss:
Where you’ll cut your losses if the trade moves against you.
Volatile stocks can reverse quickly. I see so many traders turn winners into losers because they get greedy.
A trade plan keeps you disciplined. It reminds you to stick to your stops, lock in profits, and avoid unnecessary risks.
Use the Right Tools
The perfect complement to a strong trade plan is a robust trading platform.
You’ll need one that features charts, technical indicators, stock screeners, and more.
My top pick is StocksToTrade and it’s what I use every single day.
It covers all the bases and also has a selection of add-on alert services so you can stay ahead of the curve.
Grab your 14-day StocksToTrade trial today — it’s only $7!
My Final Thoughts
At the end of the day, a trade plan is one of the simplest yet most powerful tools you can use to become a consistently profitable trader.
Build your case, follow your recipe, write it all down, and, most importantly, stick to it!
For more advice and strategies for navigating this busy market, join our StocksToTrade community.
We have tons of free live webinars.
They run all day and offer trading tips and tricks, info on our Oracle trading system, and other valuable training.
And for additional trading mentorship, stock ideas, and more, join my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade