Planning a trade starts with defining the time window. Is it intraday short-term, swing trading, or trend trading? The timeframe determines the holding period and the level of volatility you can tolerate. Next, assess the market environment—are we in a consolidation phase or a trending phase? Consolidation zones are ideal for buying low and selling high, while trending markets require you to follow the momentum. Step three is determining your risk exposure. For beginners, position size should not exceed 0.5% of total capital. In normal market conditions, keep it at 1%, and only increase to 2% in extreme 'money-making' scenarios. Step four is identifying the market asset to trade. Different assets have vastly different volatility and liquidity—stocks, bonds, futures, and options are not interchangeable. Step five is deciding your entry strategy. Common approaches include entering on pullbacks, following breakouts, predicting on the left side, or confirming on the right side. This step tests your ability to balance probability and cost. Step six is setting a stop-loss. A stop-loss isn’t just a number; it’s a logical placement. Typically, it’s set beyond previous highs or lows to ensure that if triggered, it means the market structure has been completely invalidated. Finally, step seven is taking profit. Ensure at least a 1.5:1 risk-reward ratio. In strong market conditions, you can use trailing stops or overbought/oversold indicators to lock in profits. These seven steps together form a complete, reviewable, and replicable trade.