Trading Fundamentals
Learn how participants may define objectives, risk rules, instruments, trading sessions, and a journaling routine as part of a structured plan.
A trading plan is a written framework that outlines what a participant may trade, when they may trade, how risk is managed, and how results are reviewed. Its purpose is to provide structure, helping participants compare decisions against predefined rules rather than reacting only to emotion or short-term market movement.
A trading plan may begin with clear objectives, such as learning how markets work, practising a process, or reviewing performance over time. Objectives can influence how much time is dedicated to trading, which instruments are followed, and how risk parameters are set.
Participants may choose to focus on a smaller set of instruments, such as major currency pairs, before expanding to additional markets. Focusing on selected instruments can help participants observe how pricing, spreads, volatility, and trading sessions may vary across different market conditions.
A trading approach may describe the conditions used to consider entering or exiting a trade, as well as how a position may be monitored while open. This may include market conditions, chart patterns, indicators, news events, or other factors that form part of a structured process.
A trading plan may include risk parameters such as position size, risk per trade, the number of open positions, margin usage, and conditions for pausing trading activity. Some participants use a fixed percentage of account equity, such as 1–2%, to define risk per trade, though the appropriate amount depends on account size, market conditions, and individual risk tolerance.
A trading plan may consider which sessions and timeframes are most relevant to the instruments being followed. Liquidity, volatility, and spreads can vary across sessions, so reviewing trading hours can help participants understand when market conditions may change.
A trading journal can be used to record trade details such as entry, exit, reason for the trade, position size, outcome, and notes about decision-making. Reviewing a journal over time can help participants identify patterns, evaluate whether trades followed the plan, and better understand how behaviour may affect trading decisions.
Select your evaluation account to apply these concepts in a simulated evaluation program built around discipline, consistency, and risk management.