Risk warning: Spread bets and CFDs are complex, leveraged products — most retail accounts lose money. Check any provider's published loss rate, and never risk money you can't afford to lose.
Guides · Skills library

The trading plan

Every guide on this site ends the same way: decide things before the trade, not during it. The trading plan is where those decisions live — one page, written down, followed or consciously revised, never quietly ignored.

Why written beats remembered

Under an open position, the mind renegotiates: the stop was 'probably too tight', the target 'deserves more room', the stake 'could double, this one's certain'. Psychology does this to everyone. A written plan doesn't argue back — it just makes the deviation visible, which is usually enough to stop it.

The template

One page per trade, or one page per setup you trade repeatedly. Every line decided before entry:

One-page plan — worked exampleMarketFTSE 100, rolling dailySetuppullback to support in an uptrendEntry trigger10,620Stop (idea is wrong)10,570 — 50 points awayRisk budget£40 (2% of a £2,000 account)Stake£40 ÷ 50 pts = £0.80 per pointExit10,720 target, or trail after +50Reviewjournal entry once closedThe stop is the level that provesthe idea wrong — set it first.Stake follows the budget,never confidence.The journal is wherethe edge compounds.
Every line decided before entry. The moment to change a plan is between trades — never during one.

The two lines that matter most: the stop goes where the idea is proven wrong — a level, not a pound amount — and the stake is calculated from the risk budget and the stop distance, which the position-size calculator does in three fields. If the resulting stake is below your provider's minimum, the answer is a smaller trade list, not a wider budget.

Prove it on the demo first

A plan you haven't tested is a hypothesis. Run it on a demo account for at least twenty trades, journalling every one — enough to see whether the setup occurs often enough to matter and whether you can actually follow your own rules when the price wobbles.

Changing the plan

Plans should evolve — between trades, in the journal review, with the position flat. Changing a plan mid-trade isn't revision, it's the cardinal sin wearing a clipboard. If you find a genuine flaw while a position is open, close the position, then fix the plan.

A written plan plus an honest journal is the whole edge available to a retail trader. It won't make markets predictable — it makes you predictable, which is the half of the equation you control.