Practitioner course in trader judgement
The Trading Plan: Ideas, Information and Rules
A trading plan turns a set of habits into a written business. This course covers where trading ideas come from, which information sources are worth your time and money, how to choose markets and setups, the risk limits that protect the account, and the review cycle that keeps the plan honest.
A trading plan is the written answer to every question a trader faces before the market opens: what to trade, why, how much to risk and when to stop. Traders without one make those decisions under pressure, and pressure makes poor decisions. This course has you write a plan, test it and keep it current.
Where do good trading ideas come from?
From a process, not from inspiration. Published research on market anomalies, careful observation of your own market, and the patterns in your trading journal are the main sources. The course teaches a simple idea log: every idea is written down with its source before it is tested, so you can see later which sources produce ideas that survive.
Which information sources do traders really need?
Fewer than most pay for. Company filings, official data releases and an economic calendar are free; much of the rest repeats them. The course has you log the sources you use for eight weeks and judge each by what it added to your decisions.
Who is this course for?
Every trader on the trader path. The plan you write here is the one you test in your final semester. No programming is needed.
What you will be able to do
- Generate trading ideas from a stated process, and log them before testing them.
- Rank information sources by cost, timeliness and evidence of value for your style.
- Write a complete trading plan covering markets, setups, risk, routine and review.
- Test the plan on a simulated record and revise it from the evidence.
Syllabus, module by module
Why a plan
Decisions made in advance against decisions made under pressure.
Idea generation
Observation, published research, market anomalies and your own journal as sources of ideas.
Information sources
Filings, data releases, news services, research and social media, ranked by what they are worth.
Markets and setups
Choosing what to trade and when, from your costs, your hours and your evidence.
Risk limits
Risk per trade, daily and weekly loss limits, and the rule for stopping altogether.
Review and revision
The monthly review, and how to change the plan without abandoning it after every loss.
How the certificate is earned
Weekly planning exercises and two graded problem sets: an idea and information log kept for eight weeks, and a complete written trading plan with a simulated test and revision. On a pass you receive the Course certificate in Trading Planning, issued by the Institute with a verification code. Read how certification works.
Before you start
Trading Edge: Expectancy, Probability and Luck and The Trading Journal: Self-Analysis for Traders.
This course counts toward
- Intermediate Certificate in TradingThe second semester of the trader path: a day trading course and swing trading course in one, covering technical analysis, price action, intraday execution, news, options, evidence-based testing and the written trading plan, with a tested-plan capstone. No programming.
- Diploma in Professional TradingThe top credential on the trader path and the Institute's trading certification for people who do not write code. Three semesters, 24 courses and a 160-hour capstone, from a first lesson on how markets work to a six-month simulated trading business reviewed like a desk.
Questions applicants ask
What should a trading plan include?
The markets you trade and when, the setups you take with their rules, your risk per trade and loss limits, your daily routine, and how and when you review results. The course provides a template and has you complete it for your own trading.
Are paid trading news services worth it?
Sometimes, for some styles. The course has you compare free and paid sources against a log of what each actually contributed to your decisions, so you pay only for what helps.