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Your First Written Plan — Cambodia

One page, written before the first order and not changed during a trade: which market, which timeframe, what puts you in, where the stop sits, and how much being wrong is allowed to cost.

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Free practice account  ·  One step at a time  ·  Written for first-time traders

A first plan fits on one page and is written before the first order: which market, which timeframe, the condition that puts you in, where the stop loss sits, and what share of the balance being wrong is allowed to cost — commonly about 1%. Trend following, breakout and range setups are the three classic starting frames. The plan is then traded unchanged on a free demo for several weeks, with every entry logged and its reason written down before the outcome is known.

Writing the plan, then testing it

Reading the chart: what you see, what to check, what to do next

What you seeWhat to check before actingNext step
Price making higher highs and higher lowsWhether the last pullback has finished, and where the previous swing low sitsMark the stop beyond that swing low, then size the lot from the distance
Price pressing against a level that has held several timesWhether a candle has actually closed beyond it, or only touched itWait for the close, then place the stop back inside the range
Price bouncing between two clear levelsHow far apart the levels are compared with the spread you payEnter near an edge, stop just outside it, target the opposite edge
No setup that matches the written planWhether the urge to trade comes from the plan or from boredomLog the session as a no-trade day and close the terminal

Why the plan is written before it is traded

A rule remembered is a rule that gets renegotiated in the middle of a losing trade. A rule written down can still be broken, but the breach is visible afterwards in the log, and that visibility is the whole mechanism by which a beginner improves.

One page is a deliberate limit. A plan that needs three pages contains conditions that will not be checked under pressure, and unchecked conditions are indistinguishable from having no plan at all.

Reading the log instead of the balance

At the end of a demo run the balance is the least informative number available. The useful readings are which rule was broken most often, on which day of the week, and at what hour.

Improvement then has an address. One rule is changed, the run repeats, and the log says whether the change helped. Changing several rules at once returns the sample to being uninterpretable.

Questions a first-time trader asks

What is the simplest first strategy?
Trend following on a higher timeframe: a moving average sets direction, entries are taken on pullbacks, the stop goes beyond the last swing point and the target is a multiple of the distance risked. Fewer trades, clearer rules.
How much should a beginner risk on one trade?
A common rule is about 1% of the balance, sized from the distance to the stop loss. On a small balance that means micro lots.
How long should a plan be tested before going live?
Long enough to collect a few dozen trades under the same rules, which usually takes several weeks on a demo.
How many indicators does a first plan need?
One or two. A moving average for direction and a momentum tool for timing; crowded charts mostly produce contradictions.
What goes in the trading journal?
Pair, timeframe, the reason for entry written before the result, the stop distance, the lot size and the outcome. That is what turns a run of trades into evidence.

What to read next on the way in