Why You Need a Trading Plan Before Market Open
"Failing to plan is planning to fail." — Benjamin Franklin
This applies to trading more than anything else.
Without a plan:
- You react instead of act
- Emotions drive decisions
- You chase, you panic, you lose
With a plan:
- You know what to trade
- You know when to trade
- You know when NOT to trade
Let's build your trading plan.
What Is a Trading Plan?
A trading plan is your pre-market roadmap answering:
✅ What am I looking for today?
✅ What setups will I trade?
✅ What's my maximum risk?
✅ When will I stop?
✅ How will I manage emotions?
Created: Before 9:15 AM
Followed: During market hours
Reviewed: After 3:30 PM
Why Most Traders Don't Plan
Excuses:
"I'm experienced, I don't need it"
→ Experienced pilots still use checklists
"Planning takes too long"
→ 10 minutes of planning saves hours of losses
"I'll figure it out in real-time"
→ In real-time, emotions take over
"My strategy is in my head"
→ Your stressed brain can't access it
Reality:
The best traders plan obsessively.
They don't wing it. Ever.
The Cost of No Plan
Let me show you:
Trader A: No Plan
9:15 AM: Market opens, scrambles to find trades
9:30 AM: Sees RELIANCE moving, buys (no analysis)
10:00 AM: Position red, "should I exit?"
10:30 AM: Exits for loss, "what now?"
11:00 AM: Sees another move, FOMOs in
12:00 PM: Another loss
2:00 PM: Trying to "win it back"
3:30 PM: Account down 3%, emotionally drained
Trader B: With Plan
Before 9:15 AM: Plan created
- Watchlist: 5 stocks with levels
- Setup: Breakouts with volume confirmation
- Max trades: 3
- Max risk: 2% per trade, 4% total
9:15 AM: Market opens, monitors watchlist
9:45 AM: Setup 1 triggers, enters (as planned)
10:30 AM: Exit at target (planned)
11:00 AM: Watching, no setups (patient)
2:00 PM: Setup 2 triggers, enters
3:00 PM: Closes position at target
3:30 PM: Done for day, +2.5%, calm
Difference: Planning vs winging it
The Complete Trading Plan Template
Section 1: Pre-Market Analysis (8:30 AM)
Global Markets Check
US Close: [Up/Down, %]
Asian Markets: [Sentiment]
SGX NIFTY: [Level, trend]
Key News: [Any major events]
Indian Market Context
NIFTY Bias: [Bullish/Bearish/Neutral]
Key Support: [Level]
Key Resistance: [Level]
Trend: [Up/Down/Sideways]
VIX: [Level] → [Volatility assessment]
Today's Events
Economic Data: [RBI, GDP, etc.]
Results: [Major companies]
Sector Focus: [Any sector-specific news]
Section 2: Today's Game Plan (8:45 AM)
Market Bias
Today I expect the market to:
[ ] Trend up (trade breakouts long)
[ ] Trend down (trade breakdowns short)
[ ] Range (mean reversion)
[ ] High volatility (reduce size/avoid)
Primary Strategy
Strategy: [Name from your Strategy Book]
Setup: [Specific pattern]
Timeframe: [5-min, 15-min, daily]
Entry criteria: [All conditions listed]
Watchlist
1. RELIANCE - Above 2550 = buy
Entry: 2555
Stop: 2530
Target: 2600
R:R: 1:2.8
2. INFY - Breakout 1450
Entry: 1455
Stop: 1440
Target: 1480
R:R: 1:1.7
[Continue for 3-5 setups]
Section 3: Risk Management (9:00 AM)
Position Sizing
Account Size: ₹[Amount]
Risk Per Trade: [%] = ₹[Amount]
Max Trades Today: [Number]
Max Daily Loss: ₹[Amount]
Current Portfolio Heat: [%]
Rules for Today
I WILL:
✓ Trade only watchlist setups
✓ Follow position sizing rules
✓ Set stops immediately
✓ Honor stop losses
✓ Take profits at targets
I WILL NOT:
✗ Chase moves
✗ Trade outside watchlist
✗ Increase size after loss
✗ Move stops against me
✗ Revenge trade
Section 4: Psychological Prep (9:10 AM)
Emotional Check-In
How I feel today (1-10): [Number]
If < 6: Consider not trading
If 6-8: Trade with caution
If 8-10: Normal trading
Current mental state:
[ ] Calm and focused
[ ] Slightly anxious (normal)
[ ] Stressed (take day off)
[ ] Overconfident (be careful)
Today's Affirmation
"I trade my plan, not my emotions.
I control risk, not outcomes.
I follow my rules regardless of results.
I protect capital above all else."
Section 5: Execution Plan (9:15 AM+)
Session 1: Morning (9:15-11:30 AM)
Primary focus: [Strategy/setup]
Max trades: [Number]
Watch for: [Specific patterns]
Session 2: Midday (11:30 AM-1:30 PM)
Typical action: [Observe/selective/avoid]
If trading: [Reduced size/specific setups only]
Session 3: Afternoon (1:30-3:30 PM)
Plan: [Manage positions/close by 3 PM/watch only]
Sample Real Trading Plan
DATE: October 10, 2025
=== PRE-MARKET ANALYSIS ===
US Markets: Dow +0.8%, Tech strong
SGX NIFTY: +60 points, indicating gap up
News: No major events
VIX: 14 (low, normal volatility)
NIFTY Outlook: Bullish continuation
Key Level: 24,500 support, 24,800 resistance
Trend: Uptrend intact (above 20/50 EMA)
=== TODAY'S GAME PLAN ===
Strategy: Morning Breakout
Market Bias: Expecting uptrend continuation
Primary Setup: Pullback entries in strong stocks
WATCHLIST:
1. RELIANCE @ 2565
- Above 2570 = Long
- Stop: 2550 (-20)
- Target: 2600 (+35)
- Position: 100 shares (₹2,000 risk)
2. HDFCBANK @ 1640
- Above 1645 = Long
- Stop: 1630 (-15)
- Target: 1670 (+30)
- Position: 133 shares (₹2,000 risk)
3. INFY @ 1445
- Above 1450 = Long
- Stop: 1440 (-10)
- Target: 1470 (+25)
- Position: 200 shares (₹2,000 risk)
=== RISK MANAGEMENT ===
Account: ₹5,00,000
Risk Per Trade: 2% = ₹10,000
Max Trades: 3
Max Daily Loss: ₹15,000
Portfolio Heat: Currently 0%
TODAY'S RULES:
✓ Enter only if ALL criteria met
✓ Set stop immediately after entry
✓ Book 50% at Target 1
✓ Trail stop on remaining
✓ Stop trading after 2 losses
✓ Close all by 3:00 PM
=== PSYCHOLOGY ===
Mood: 8/10 - Calm, focused, ready
Yesterday: +₹6,500 (good discipline)
Focus Today: Patience, quality over quantity
Affirmation: "I wait for MY setups only"
=== SESSION PLAN ===
9:15-9:30 AM: Observe only, confirm bias
9:30-11:30 AM: Primary trading window
11:30 AM-1:30 PM: Selective only
1:30-3:00 PM: Manage positions
3:00 PM: Close all intraday
=== COMMITMENT ===
Signed: [My Name]
Date: October 10, 2025
"I commit to following this plan regardless of outcomes"
How to Use Your Plan
Before Market Open
- Create the plan (10-15 min)
- Review twice (read it aloud)
- Visualize executing it perfectly
- Commit (sign it)
During Market Hours
- Keep plan visible (printed or 2nd monitor)
- Check before every trade (on watchlist?)
- Update as needed (mark triggered/closed)
- Refer when emotional (re-read rules)
After Market Close
- Review execution (followed plan?)
- Grade discipline (A-F)
- Note lessons (what to improve)
- Plan tomorrow (repeat)
Common Planning Mistakes
❌ Mistake #1: Too Vague
Bad Plan: "Trade NIFTY stocks. Look for breakouts."
Good Plan: "Trade only: RELIANCE above 2570, INFY above 1450, HDFC above 1645. Enter with volume confirmation. Stop below breakout point. Target 1:2 R:R."
❌ Mistake #2: Too Complex
Bad Plan:
- 20 stocks on watchlist
- 5 different strategies
- Complex calculations mid-trade
Good Plan:
- 3-5 stocks maximum
- 1-2 strategies
- Pre-calculated levels
❌ Mistake #3: No Flexibility
Bad Plan (too rigid): "Must take all 3 trades"
Good Plan: "Up to 3 trades IF setups trigger"
❌ Mistake #4: No Risk Limits
Bad Plan: Lists trades but no max loss
Good Plan: "Stop after ₹15K loss or 2 losses, whichever first"
❌ Mistake #5: Not Writing It Down
Bad Plan: "I'll remember it"
Good Plan: Written, printed, visible
Benefits of Trading Plans
Benefit #1: Removes Emotion
Without plan: "What should I do?"
With plan: "What does my plan say?"
Decision made before emotion enters.
Benefit #2: Builds Discipline
Tracking: Did I follow the plan?
Over time: Following plan becomes automatic
Benefit #3: Identifies Edge
Data: Planned trades vs random trades
Discovery: Planned trades win 64%, random win 38%
Action: Stick to planned trades only
Benefit #4: Reduces Stress
Knowing:
- What you're looking for
- When to trade
- When to stop
Result: Calm, focused, confident
Benefit #5: Improves Over Time
Monthly review:
- What plans worked?
- What didn't?
- Patterns in winning plans?
Continuous improvement based on data
Advanced Planning
Weekly Planning (Sunday Evening)
WEEK: Oct 7-11, 2025
Major Events This Week:
- Wednesday: RBI policy
- Friday: US jobs data
Weekly Strategy:
- Monday-Tuesday: Normal trading
- Wednesday: Observe only (RBI)
- Thursday-Friday: Resume trading
Focus This Week: Discipline
Last Week Performance: +₹18K
Goal This Week: +₹20K
Improvement Area: Exit too early
Monthly Planning
MONTH: October 2025
Goals:
- Win Rate: >60%
- Risk:Reward: >1:2
- Max Drawdown: <8%
- Trading Days: 18-20
Strategy Review:
- Strategy A (Breakouts): 68% WR → Keep
- Strategy B (Pullbacks): 45% WR → Refine or drop
New Rules to Test:
- No trading after 2 PM
- Volume must be 1.5x average
Areas to Improve:
- Hold winners longer
- Cut losers faster
TradeLyser Planning Features
TradeLyser makes planning easy:
"Start My Day" Workflow
- Guided planning process
- Templates for different strategies
- Auto-fills market data
- Saves your plans
Plan Tracking
- Compare: Plan vs Actual
- Metric: Adherence score
- Insight: When you deviate, results?
AI-Powered Suggestions
- Elysia reviews past plans
- Identifies what worked
- Suggests improvements
- Customizes to your trading
The Bottom Line
You wouldn't:
- Build a house without blueprints
- Fly a plane without a flight plan
- Perform surgery without a procedure
Why would you trade without a plan?
Planning is:
- Not optional for serious traders
- The difference between pro and amateur
- Your edge in chaotic markets
10 minutes of planning:
- Saves hours of stress
- Prevents costly mistakes
- Improves results dramatically
Plan your trade. Trade your plan.
Take Action Now
Today:
- Download the trading plan template
- Create your plan for tomorrow
- Set 15 minutes aside each morning
This Week:
- Plan every single day
- Track adherence (%)
- Compare: planned vs unplanned trades
This Month:
- Review all plans
- Identify patterns in winners
- Refine your planning process
👉 Use TradeLyser's "Start My Day" Feature
👉 Download: Daily Trading Plan Template
👉 Next: How to Handle a Losing Streak
Do you create daily trading plans? What's your process? Share below.