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Why You Need a Trading Plan Before Market Open

· 9 min read
Karthik
Karthik
Founder, TradeLyser

"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​

  1. Create the plan (10-15 min)
  2. Review twice (read it aloud)
  3. Visualize executing it perfectly
  4. Commit (sign it)

During Market Hours​

  1. Keep plan visible (printed or 2nd monitor)
  2. Check before every trade (on watchlist?)
  3. Update as needed (mark triggered/closed)
  4. Refer when emotional (re-read rules)

After Market Close​

  1. Review execution (followed plan?)
  2. Grade discipline (A-F)
  3. Note lessons (what to improve)
  4. 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:

  1. Download the trading plan template
  2. Create your plan for tomorrow
  3. Set 15 minutes aside each morning

This Week:

  1. Plan every single day
  2. Track adherence (%)
  3. Compare: planned vs unplanned trades

This Month:

  1. Review all plans
  2. Identify patterns in winners
  3. 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.