DAY TRADING PLAN ($1K)
1. Account Rules
•Account size: $1,000
•Risk per trade: 2% ($20)
•Max trades per day: 3
•Max daily loss: 4% ($40) – stop trading
2. Market Preparation (Before Open)
•Market bias: Trend-following only
•Key news & events: Check economic calendar before open
•High-relative-volume stocks: Gappers & strong pre-market movers
•Index trend (SPY / QQQ): Above VWAP & 9/20 EMA
3. Trade Setup Criteria
•Strategy name: VWAP pullback / Break & Retest
•Timeframe: 5M for setup, 1M for entry
•Trend direction: Trade only with the trend
•Volume confirmation: Volume expansion on entry
•Key levels: VWAP, Pre-market high/low, Support & Resistance
4. Entry Plan
•Entry trigger: Bullish candle close above VWAP / level
•Entry price: At confirmation candle close
•Position size: Calculated to risk $20
•Reason for entry: Trend + volume + key level confluence
5. Risk Management
•Stop-loss price: Below VWAP / last higher low
•Risk amount ($): $20 max
•Risk-Reward ratio: 1 : 2 minimum
6. Exit Plan
•Partial take-profit: At 1R (sell 50%)
•Final target: 2R or next resistance
•Trailing stop rule: Trail below higher lows
•Exit invalidation rule: Loss of VWAP with volume
7. Trade Management Rules
•No revenge trades
•No chasing entries
•No moving stop-loss wider
•Walk away after daily loss
8. Post-Trade Review
•Followed plan? Yes / No
•Emotion during trade: Calm / Fear / Greed
•Mistakes noted: Late entry / Early exit / Overtrading
•Lesson learned: Follow the process, not emotions
Daily Trading Law
Small losses are tuition. Big losses are mistakes.
Protect capital. Consistency pays.