The Trading Plan — Session-Level Execution of Your System
Your trading system is the permanent framework. Your trading plan is how you execute that system for a specific session — today, this week, or this month. The plan defines the specific markets, levels, directional bias, and size for this session only. System = what you do. Plan = how you do it today.
Trading plan = session-level rules for executing your system; different from the system itself
Six components: Markets and Levels, Position Sizing and Compounding, Directional Bias, Expectations, Results, Execution Review
Before every session: determine your directional bias — is it based on price at a HTF level or on emotion?
If bias and setups align and unfold as planned = in sync with the market → higher performance session
If out of sync with the market = reduce position size or sit on hands; do not force trades
Post-session review is mandatory: what happened vs expectations? How did execution measure up?
Lesson
The Six Components of a Trading Plan
A trading plan forces you to articulate your thinking before the session opens. If you cannot clearly state your bias and its specific reason, your directional bias is not a bias — it is a guess. The post-session review is equally important: it reveals the gap between what you planned and what actually happened.
1. Markets and Levels: which pairs are you watching? Are they correlated? Specific price levels to buy or sell?
2. Position Sizing and Compounding: what size for today's trades? Where to add? How much to add?
3. Directional Bias: bullish or bearish? WHY? Must cite a specific technical reason: price at HTF level, structure break, or macro catalyst
4. Expectations: what do you expect to happen in today's session and why?
5. Results: what actually happened vs expectations? Track this every session without exception
6. Execution Review: did you cut a winner early? Move a stop? Rush an entry? How will you improve tomorrow?
Post-session questions: Was your bias correct? Did you add to a losing position? Did you rush? What will you do differently?
Check Yourself
Before a trading session, a trader decides to go long BTC because it feels like it wants to go up. They open a position without checking HTF levels. According to Course 3, what is wrong with this approach?
The bias was formed on emotion, not on price vs a HTF level; a valid directional bias requires a specific technical or fundamental reason: price at a key level, a structure break, or a macro catalyst
Nothing is wrong — intuition built from experience is a valid form of discretionary bias; feel-based entries are a legitimate and proven approach
The trader should always go in the opposite direction of their initial gut feeling — emotions consistently point the wrong way in trading
Answer it (with a live chart) in the interactive lesson.
Liquidity Theory · Learn · Analyze · Trade together Educational content only — trading involves substantial risk and most beginners lose money. Nothing here is financial advice.