trading-plan-generator

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---
name: trading-plan-generator
description: Generate comprehensive trading plans with risk management, position sizing, entry/exit strategies, and performance tracking to trade with discipline and consistency.
---

# Trading Plan Generator

A comprehensive skill for creating disciplined, rule-based trading plans that help you manage risk, control emotions, and trade consistently.

## What This Skill Does

Helps you create professional trading plans for:
- **Day Trading** - Intraday positions, quick scalps
- **Swing Trading** - Multi-day to multi-week positions
- **Position Trading** - Long-term trend following
- **Options Trading** - Directional and income strategies
- **Investing** - Long-term portfolio management

## Why You Need a Trading Plan

**Without a plan:**
- Emotional, impulsive decisions
- Inconsistent position sizing
- No clear entry/exit rules
- Revenge trading after losses
- Account blowup risk
- Can't identify what works

**With a plan:**
- Disciplined, rule-based trading
- Consistent risk management
- Clear decision framework
- Emotional control
- Long-term profitability
- Measurable improvement

**The Stats:**
- 90% of traders fail (most have no plan)
- Professional traders ALL have written plans
- Plan + discipline = edge

## Core Components of a Trading Plan

### 1. Trading Goals & Mindset
- Financial goals (realistic)
- Time commitment
- Risk tolerance
- Trading philosophy
- Success definition

### 2. Risk Management (MOST IMPORTANT)
- Maximum risk per trade (1-2% recommended)
- Maximum daily loss limit
- Maximum drawdown tolerance
- Position sizing rules
- Stop-loss requirements
- Risk/reward minimums

### 3. Market Selection
- What markets you trade (stocks, forex, crypto, options)
- Liquidity requirements
- Price range preferences
- Sector focus (if any)
- What you DON'T trade

### 4. Trading Setup Criteria
- Entry signals (technical/fundamental)
- Confirmation requirements
- Timeframes used
- Pattern recognition
- Market condition filters

### 5. Entry Rules
- Exact entry triggers
- Order types (market, limit, stop)
- Position sizing calculation
- Scaling in (if allowed)
- Time-of-day restrictions

### 6. Exit Rules
- Stop-loss placement (hard rules)
- Take-profit targets
- Trailing stop strategies
- Time-based exits
- Scaling out rules
- Break-even stops

### 7. Trade Management
- When to adjust stops
- When to add to position
- When to reduce size
- When to exit early
- Never scenarios (what you never do)

### 8. Psychology & Discipline
- Pre-market routine
- Emotional state check
- Tilt recognition
- Break requirements
- End-of-day review
- Accountability measures

### 9. Performance Tracking
- Trade journal requirements
- Metrics to track
- Review frequency
- Improvement process
- Strategy adjustment criteria

## Risk Management Frameworks

### The 1% Rule (Recommended for Most Traders)
**Never risk more than 1% of account on single trade**

**Example:**
- Account size: $50,000
- Maximum risk per trade: $500 (1%)
- Stock entry: $100
- Stop-loss: $98
- Risk per share: $2
- Position size: $500 / $2 = 250 shares
- Total position: $25,000 (50% of account)
- Actual risk: $500 (1% of account)

**Benefits:**
- Can survive 20+ consecutive losses
- Removes emotion from sizing
- Consistent risk across trades
- Protects capital

### The 2R Minimum Rule
**Only take trades with 2:1 reward-to-risk or better**

**Example:**
- Entry: $100
- Stop: $98 (risk = $2)
- Target: $104 (reward = $4)
- R:R = 2:1 ✅

**Why it matters:**
- Can be profitable with 40% win rate
- Forces selective trading
- Improves overall edge

### Maximum Drawdown Limit
**Hard stop trading if down X% from peak**

**Recommendations:**
- Conservative: 10% drawdown → stop trading
- Moderate: 15% drawdown → stop trading
- Aggressive: 20% drawdown → stop trading

**When hit:**
1. Stop trading immediately
2. Review all trades
3. Identify mistakes
4. Paper trade until recovered mentally
5. Resume with reduced size

## Trading Styles

### Day Trading