{"id":660823,"date":"2025-06-13T15:00:50","date_gmt":"2025-06-13T13:00:50","guid":{"rendered":"https:\/\/ftmo.com\/?p=660823"},"modified":"2025-06-13T15:38:15","modified_gmt":"2025-06-13T13:38:15","slug":"why-do-we-need-a-structured-trading-plan","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/why-do-we-need-a-structured-trading-plan\/","title":{"rendered":"Why do we need a structured trading plan?"},"content":{"rendered":"

Every serious trader needs a structured trading plan that they can follow to achieve good results. But first we need to understand what it is, what it looks like and why we need it.<\/em><\/p>\n

In the next part of our series discussing the psychology of trading from our trading psychology course<\/a>, we’ll talk about why it’s important for traders to understand how the markets work and how this will help them in creating a structured trading plan. This is because it is one of the cornerstones of success for any serious trader and therefore we should know what it is, what it looks like and why we need it to be successful.<\/p>\n

Why do we need structure?<\/h2>\n

Anyone new to trading may have initially struggled to read the information on a chart, which may have looked like a jumble of rectangles. After a while, they can identify trends and patterns, i.e. they can see the structure in the market and understand what is happening in the markets, but they have to learn how to approach the trading itself. And that can be a much tougher nut to crack.<\/p>\n

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Given that forex can be traded virtually 24 hours a day during the working week (and even 24\/7 with Bitcoin), some traders may tend to keep their platform open and trade at times that make little sense to them. To avoid something like this, we need to create a personal structure or framework that keeps us focused, consistent and in control.<\/p>\n

Freedom or structure?<\/h2>\n

The problem is that many traders do trading for the vision of freedom and independence, so they may have a problem with the rules at first sight. But in reality, the rules and structure practically support this freedom in trading. In fact, structure is not about limiting us, it is about giving us clear rules. So let’s define a system with clearly defined trading hours, entry and exit rules and strict risk management. This will mean that we will lose a certain number of potentially profitable positions. At the same time, however, we will avoid countless positions in which we could make unnecessary mistakes and lose a lot of money.<\/p>\n

Our own rules<\/h2>\n

Another advantage of this approach is that we set our own rules. But to make it work, we need to start from principles that apply generally. In the last part, we talked about the SMART method to help us with goal setting. When setting our own rules, this is also true because our strategy should be specific and measurable so that it makes sense.<\/p>\n

Vague or specific rules<\/h2>\n

A strategy such as \u201cwhen price moves quickly from support or resistance, wait for confirmation and enter with reasonable risk<\/em>\u201d is neither specific nor measurable and tends to raise more questions than answers.<\/p>\n