📊 Trading Plan vs Trading Strategy

Traders mix these up all the time. They are not the same thing. You need both.

🔹 What a Strategy Is

A trading strategy is the setup. It defines what you trade and why.

• The pattern or level you wait for
• The entry trigger
• The invalidation
• The target logic

Example: buy the retest of broken resistance only if volume confirms and structure holds. That is a strategy. It tells you when a trade exists.

✍️ What a Plan Is

A trading plan is how you run that strategy without blowing up.

It covers the business around the setup:
• Risk per trade
• Max loss per day
• Which sessions you trade
• Position size
• How you execute and journal
• What you do after a loss

The strategy finds the trade. The plan decides if you are allowed to take it.

⚡️ How They Work Together

Strategy without a plan: you know the setup, then oversize it, revenge trade, and move the stop.

Plan without a strategy: you have rules, but no repeatable edge. You are disciplined at being random.

Both together: the setup qualifies, risk is fixed, and you execute the same way every time.

⚠️ Why You Need Both

A strategy answers “what do I trade?”
A plan answers “how do I survive while I trade it?”

One gives you an edge. The other protects it. Miss either and the account pays for it.

Save this. Write your setup rules on one side and your risk rules on the other. If one side is blank, you are not ready to click.