Definition
A written set of rules for how you trade: what you trade, what setups you take, how much you risk, and when you stop for the day.
The story
Decisions made before the market opens can be calmer than decisions made with a position moving against you. A plan answers the hard questions in advance, such as where the stop-loss goes and how big the position is, so the moment itself is about following it, not inventing it.
Why markets watch it
It puts the other pieces, like risk limits and position size, in one place before the trading day starts.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms