Building a Simple Daily Futures Trading Plan

A daily trading plan is a structured routine that guides your actions before, during, and after each trading session. It's a personalized roadmap that outlines your objectives, strategies, risk management rules, and procedures for reviewing your performance. For futures traders, where markets operate nearly 24/7 and decisions must be made quickly, having a well-defined daily plan is essential for maintaining focus, discipline, and consistency. This plan helps you approach each trading day with a clear purpose, manage your emotions effectively, and continuously improve your skills over time.

Importance for Trading

Building a simple daily futures trading plan is crucial because:

• It helps you stay focused on your objectives and avoid distractions
• It provides structure and discipline in a chaotic market environment
• It ensures you consistently apply your trading strategy and risk management rules
• It helps you track your progress and identify areas for improvement
• It creates a routine that promotes emotional stability
• It transforms trading from gambling into a professional business

"Trading without a plan is like building a house without blueprints—you might end up with something, but it's unlikely to be what you intended, and it's probably not going to be very stable."

The Restaurant Owner Story

Meet Sofia, who runs a successful restaurant known for its innovative daily specials. Her approach to planning and executing each day's menu perfectly illustrates how a daily trading plan works for futures traders.

The 3-Step Daily Routine

Sofia has a simple but effective 3-step routine that she follows every day:

1. Prepare (Morning): Before the restaurant opens, she reviews her inventory, checks the weather forecast, and plans the day's specials.
2. Execute (Service Hours): During service hours, she focuses on executing her plan efficiently, managing her staff, and responding to customer needs.
3. Review (Evening): After closing, she analyzes the day's performance, identifies areas for improvement, and prepares for the next day.

"This 3-step routine is the foundation of our success," Sofia explains to her new sous chef, Marco. "It ensures we're always prepared, focused, and continuously improving."

Marco notices that Sofia is incredibly consistent with this routine, even on days when she's tired or stressed.

"The routine is non-negotiable," Sofia emphasizes. "It's not something I do when I feel like it—it's a commitment I make to myself and my business every single day."

"A daily trading plan is like a chef's daily routine—it provides a structured framework for preparing, executing, and reviewing your trading activities, ensuring consistency and continuous improvement."

This illustrates the basic structure of a daily trading plan. Just as Sofia follows a 3-step routine of preparing, executing, and reviewing, futures traders should develop a similar daily plan that guides their actions before, during, and after each trading session.

The Preparation Phase

Before the restaurant opens, Sofia spends an hour in her office reviewing key information and planning the day's menu.

"This preparation time is crucial for setting the stage for a successful day," Sofia explains. "It's when I gather the information I need to make informed decisions during the busy service hours."

Sofia's preparation routine includes:

1. Checking inventory levels: Ensuring they have enough of each ingredient
2. Reviewing the weather forecast: Planning for potential changes in customer demand
3. Analyzing recent sales data: Identifying which dishes have been most popular
4. Consulting with local farmers: Discovering what's fresh and in season
5. Designing the daily specials: Creating new dishes that capitalize on available ingredients and customer preferences

"This preparation process isn't just about gathering information—it's about getting into the right mindset," Sofia notes. "By the time we open the doors, I'm confident, focused, and ready to handle whatever the day brings."

"Pre-market preparation in trading is like a chef reviewing their inventory, weather forecast, and customer preferences—it sets the stage for a successful day by ensuring you have the right information and mindset before the market opens."

This demonstrates the importance of pre-market preparation in a daily trading plan. Just as Sofia prepares for her restaurant's service hours by reviewing key information, traders should develop a pre-market routine that includes analyzing market news, reviewing economic calendars, identifying potential trading setups, and assessing their own emotional state.

The Execution Phase

Once the restaurant opens, Sofia shifts her focus to executing her plan efficiently. She trusts her staff to follow the established procedures and focuses on overseeing the entire operation.

"During service hours, my job is to guide the team and make sure everything runs smoothly," Sofia explains to Marco. "I've already made the major decisions during my preparation time. Now it's about execution."

Sofia's execution strategy includes:

1. Monitoring customer satisfaction and addressing any complaints
2. Ensuring quality control for each dish
3. Managing the flow of orders from the kitchen to the dining room
4. Adjusting staffing levels based on customer volume
5. Responding to unexpected challenges (equipment malfunctions, ingredient shortages)

"The key is to stay calm and focused, even when things get hectic," Sofia emphasizes. "I trust my team to handle their individual tasks, and I focus on the overall picture. If I start micromanaging or getting emotional, the entire operation can fall apart."

"The execution phase of a trading plan is like a chef overseeing a busy kitchen—it's about trusting your preparation, following your rules, and staying calm under pressure."

This illustrates the importance of disciplined execution in a daily trading plan. Just as Sofia focuses on guiding her team and maintaining quality control during service hours, traders should focus on executing their pre-defined trading plan without deviating due to emotions or impulsive decisions. This requires trusting your analysis, following your risk management rules, and avoiding the temptation to chase quick profits or revenge losses.

The Review Phase

After the restaurant closes, Sofia dedicates time to reviewing the day's performance. She sits down with her team to analyze what worked well, what could be improved, and what lessons they learned.

"This review session is just as important as the preparation and execution phases," Sofia explains to Marco. "It's how we turn our daily experiences into long-term improvements."

Sofia's review process includes:

1. Analyzing sales data for each menu item
2. Reviewing customer feedback (both positive and negative)
3. Identifying any operational bottlenecks or inefficiencies
4. Discussing any unexpected challenges and how they were handled
5. Documenting specific lessons learned for future reference

"The goal isn't to celebrate successes or dwell on failures—it's to extract objective insights that will help us improve our performance tomorrow," Sofia emphasizes. "We're constantly refining our approach based on real-world data, not just hunches or opinions."

"The review phase of a trading plan is like a chef analyzing their daily sales and customer feedback—it's about transforming experience into actionable insights that improve future performance."

This demonstrates the importance of post-session review in a daily trading plan. Just as Sofia analyzes her restaurant's performance after closing, traders should dedicate time to reviewing their trading activity at the end of each day. This includes documenting their trades, analyzing their results, identifying patterns in their decision-making, and extracting specific lessons for future improvement.

Using This Knowledge in Real-Time Trading

Step 1: Prepare (Before Market Open)

Real-time example: It's 8:30 AM, and you're preparing for a day of 0DTE options trading.

How to prepare effectively:

1. Market analysis: Review overnight news, economic calendar, and futures performance
2. Watchlist creation: Identify 3-5 securities with potential setups
3. Level identification: Mark key support/resistance levels on your charts
4. Strategy selection: Determine which strategies you'll focus on today
5. Mental preparation: Center yourself with a brief mindfulness exercise

"Pre-market preparation is like a chef gathering their ingredients and sharpening their knives—it sets the stage for a successful day by ensuring you're ready to act when opportunities arise."

Action plan:

• Review financial news sites for overnight developments that might impact the market
• Check the economic calendar for any major announcements scheduled for today
• Identify 3-5 liquid securities (SPY, QQQ, AAPL, MSFT, TSLA) that meet your criteria
• Mark key support and resistance levels on your charts for these securities
• Decide whether you'll focus on breakout trades, reversion trades, or a combination of both
• Spend a few minutes in quiet reflection, visualizing successful execution and disciplined risk management

Step 2: Trade (During Market Hours)

Real-time example: It's 9:45 AM, and you've identified a valid breakout setup on QQQ.

How to execute your trading plan:

1. Verify entry criteria: Ensure all conditions for your setup are met
2. Select appropriate options: Choose strike prices and expirations that align with your strategy
3. Size your position: Determine the number of contracts based on your risk tolerance
4. Set profit targets and stop losses: Define your exit points before entering the trade
5. Monitor the trade: Track price action, volume, and key indicators

"Trading is like cooking—you need to follow the recipe precisely, monitor the ingredients carefully, and adjust as needed to create a successful dish."

Action plan:

• Verify that QQQ has broken above resistance with increasing volume
• Select a slightly out-of-the-money call option with a reasonable bid-ask spread
• Limit your risk to 2% of your account on this trade
• Set a profit target at the next resistance level and a stop loss below the breakout point
• Monitor the trade closely, adjusting your stop loss as the price moves in your favor

Step 3: Review (After Market Close)

Real-time example: It's 4:30 PM, and the market has closed. You're now ready to review your trading day.

How to conduct an effective review:

1. Document all trades: Record entry and exit prices, reasoning, and emotional state
2. Analyze performance metrics: Calculate win rate, average win/loss, and profit factor
3. Identify patterns: Look for commonalities in your successful and unsuccessful trades
4. Extract lessons learned: What could you have done differently to improve the outcome?
5. Adjust your trading plan: Implement specific changes based on your analysis

"Reviewing your trades is like a chef tasting their dishes and making notes for improvement—it's how you transform experience into expertise."

Action plan:

• For each trade, record the date, time, security, entry/exit prices, and P&L
• Note your emotional state before, during, and after the trade
• Analyze whether you followed your trading plan or deviated due to emotions
• Identify what worked well and what could be improved
• Create a list of specific action items to implement in your next trading session

Practical Tips for Building a 0DTE Trading Plan

1. Start with a simple plan and add complexity as you gain experience
2. Write down your plan – having it in writing makes it easier to follow
3. Test your plan in a demo account before risking real money
4. Review your plan regularly and make adjustments as needed
5. Be consistent with your routine—the more consistently you follow your plan, the better your results will be

Remember, a well-defined trading plan is your roadmap to success in the fast-paced world of 0DTE options trading. As legendary trader Jesse Livermore said, "There is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again." By developing a comprehensive trading plan and sticking to it consistently, you can increase your chances of navigating the market's challenges and achieving your financial goals.