A daily plan and an emergency brake
Lesson 9 of 12 in the course “Prop Trading”. Free, with animations and a quiz.
A trading plan on one page
Before the day Mira writes a plan: markets (gold and EUR/USD), time (the London session and the New York open), 0.5% risk per trade, a 2R target, 3 trades max and her own daily stop of −1.5%. The rule is simple: if a trade isn’t in the plan, there’s no trade. A plan is written calm and traded in any mood.
The news calendar
In the morning, check the economic calendar: central bank rate decisions, US inflation (CPI) and the jobs report (NFP, usually the first Friday of the month). In those minutes price jumps and stops can fill worse than where they sit (slippage). Don’t want that risk? Don’t hold trades when the news drops.
The day’s emergency brake
Three brake rules. Two stops in a row: a break of at least half an hour. Hit your own daily stop, which is stricter than the firm’s limit: the day is over. Made a good gain: you can stop too and not give it back. The point is that the decision is made in advance, not in the heat of the moment.
A trade journal
After every trade, three lines: why you entered, where the stop and target were, how you felt. After a week you can see which trades make money and which were impulse. A journal is the main tool for getting better; it’s free and takes a minute. In the Brainax simulator the trade history writes itself.
Tilt
Tilt is trading on emotion after a loss: bigger, more often and with no plan. The signs: you want to “win it back”, the lot keeps growing, the stop keeps moving. There’s one cure: close the platform and go outside. The market will be there tomorrow, your account only if you protect it today.
Check yourself
- Mira spots a nice setup on oil, but her plan only has gold and EUR/USD. What should she do?
Correct answer: Skip it: no trades outside the plan. The plan protects you from impulses. A new market is learned on demo first and only then added to the plan. - The NFP report is out in 10 minutes. Mira has an open trade. What’s safer?
Correct answer: Close or cut the trade before the release. When news drops, price jumps and the stop can fill worse. With no open trade, that risk isn’t yours. - Which sign points to tilt?
Correct answer: After a loss the lot grows and the stop moves away. Tilt is when emotions control size and the stop. The cure is a pause and a return to the plan.