A trading plan should be built in accordance with your expectations, goals, knowledge, experience, investing capacities. A trading plan should not be copied by other traders.
Decide your motivation
Decide your commitment
Decide your goals
Keep records of your trading activity
Decide how much capital you will invest
Decide on the risk tolerance
Why do you need the plan?
You need the plan to know every moment what you are doing. It will help you make well-thought decisions. A trading plan will help you stay away from emotional decisions when the situation might not be at its best.
Easier for you to trade
Since the plan is done in advance, you can trade based on what you set up already.
More logic decisions
You have done some calculations and put some limits of tolerance when it comes to losses, so you will know better when to leave the market.
Improve trading discipline
By trading according to your plan with strong discipline, you will discover why some assets are good and some are not good for you.
There’s always room for improvement
Keeping track of your past decisions will help you to not repeat past actions which did not result in profit. You improve your trading intuition also.