Part 3 of 7 in the 7 Systems You Need to Trade the Lazy Way
The Proposal: Creating a Trade Plan and Placing the Right Orders
The Proposal: Creating a Trade Plan and Placing the Right Orders
Every successful trade starts with a solid plan. This is the stage where you stop dreaming and start preparing for action. The goal? To craft a clear, executable strategy that takes the guesswork out of the equation. This is where traders separate themselves from gamblers.
Why Planning Matters
Think of a trade plan like a map. Without one, you’re wandering aimlessly, hoping to stumble upon success. With one? You’re confidently moving toward your destination. A well-thought-out trade plan ensures:
You enter trades at the right time and price.
You know your exit strategy before you ever enter.
Your emotions don’t take over when the market starts to move.
Successful traders know the plan is sacred. It’s what keeps them focused, disciplined, and ultimately profitable. Without it, even the best opportunities can turn into costly mistakes and missed profits.
Crafting the Perfect Trade Plan
A solid trade plan has three critical elements:
Entry Point: Where will you get in? This should be based on a clear setup—not a hunch or FOMO. Define your trigger levels and ensure they align with your overall strategy.
Exit Strategy: Know your target before you begin. This includes your profit target and your stop-loss level. The goal is to lock in gains and limit losses without second-guessing in the heat of the moment.
Risk/Reward Ratio: Every trade should have a favorable risk/reward ratio. Ideally, you’re risking $1 to make $3 or more. If a trade doesn’t meet your criteria, you don’t take it—simple as that.
The Emotional Element
Planning isn’t just about numbers; it’s about mindset. A well-laid plan gives you the confidence to act decisively. It removes the stress of wondering, “What do I do now?” and replaces it with clarity and control.
The next time you sit down to trade, ask yourself: Do I have a plan, or am I winging it? If you’re honest, you’ll know what to do next.
With the plan you know your numbers. At what prices can you enter a trade and make a killing and at what price is it not worth the headache and risk of loss. In business, you never want to take on a project where you will stress and and have a risk of losing money. Why do the same in your trading?
My Checklist for defining a trade plan
Setup: What trade setup is it and what is the win rate? Don’t know it? Paper trade it until you do. There will always be more trades.
Target. What price(s) is it going to? If an option trade, then I’m looking at the where the underlying stock’s price is going and what I can sell the option contracts for.
What stop should I use? (options, I typically use recent low or low of day)
What’s my R? What is the reward to risk? SECRET TIP: that changes everything: I want 5-10R so I have a high probable 3-5R exit
What time is it? Do I have enough time for my idea to work? Am entering when stocks reverse? Markets often move with a rhythm, with top of hours sometimes bringing change of direction
What is the RSI? Super important. I typically only want to go long when RSI is under 40 or short if RSI is over 60.
What price action trigger do I want for entering the plan? I want failed breaks combined with lower highs for a short and higher lows for a long.
How long after entering should I be in profit? I’m typically green within 15 minutes for intraday trades. If it’s taking longer, I might need to start reducing size or cutting the trade.
If in a high probable win trade, instead of taking profit early, should I be adding?Where should I reduce or increase size?
How much money should I allocate for the trade? How many contracts. Not oversize or undersizing keeps you in the game. Never forget Risk Management.
This may seem like a lot of steps, but with practice it becomes fast and more important, it prepares you for your “journey”. It gives you a road man, structure, to get you to your profits when it works and preserves capital when it doesn’t.
There is a lot of steps, that is why I made Edge Trade Planner to help me…
Let’s review how Edge helps me…
Playbook Scanner — I have a series of algos that look for my setups and do step 1 to 7 for for me.
Trade Planner - I can create and tweak trade plans, by entering my targets, edge will let me know what I should be able to sell the contracts for it the targets are met. It also evaluates risk/reward and clearly indicates if it doesn’t meet standards.
Sizing - Based on my allocation rules, it will tell me exactly how many contracts i should be acquiring.
Edge reduces my personal effort to bring consistency to my planning and results. It takes a multi minute process to under a minute some times just a handful of seconds. I like being Lazy!
Edge Trade Planner – The Tool Purpose-Built to Help Me Be “Lazy”
Speaking of systems, Edge Trade Planner is the tool I personally built to support my trading process. My goal? To spend just 2 hours a week trading, with everything running on autopilot. It’s not there yet, but hopefully by end of 2025. With Edge Trade Planner, I’ve designed a system that helps identify the best opportunities, automate the planning, and track the performance—all with minimal effort on my part.
Want to know how? Here’s a small glimpse of what it can do now:
Option Scanner: Identifies patterns in option volume that match my special mix of criteria to spot what big money is doing.
Playbook Scanner: Imagine having access to generated trade ideas and plans based on my playbooks. I’ve got my #1 playbook added, and my goal is to add one playbook per month. I’m tired of watching screens, but I’m not tired of trading profits. ;)
Level-Based Ideas: A section where I, or other traders, share ideas based on what levels we’re watching for reactions or targets. It’s a powerful way to narrow your focus.
Chat: A space where experienced traders share ideas and trades in real time.
Want to be a part of this journey? Apply today to see if you qualify to join this exclusive community. I want people who are motivated to make more trading less, who take action when needed, and who communicate those actions—then get back to enjoying life.
If you’re ready to take your trading to the next level, Edge Trade Planner can help you plan, execute, and monitor your trades more effectively. Let’s make trading simpler, smarter, and yes, lazier.
Join the Two Hour Trading Community and get access to use Edge Trade Planner.