The trade plan: free trading lesson

Step 1

The entry: where you get in

The entry is the price where you get in, and it needs a reason: a level and a reaction at it, from lessons 4 and 5. You can buy now at the market price (a market order), or leave an order that waits for a better price (a limit order). A buy limit below the price only fills if the market comes down to it.

Price dips into the support zone and is pushed back. Buyers are there.
The plan buys here, just above the zone, at 4,110.

Step 2

The stop loss: where you are wrong

The stop loss is an order that closes the trade if price reaches it. Put it where your idea is proven wrong, not where the loss feels bearable: beyond the level, not on it (lesson 4, step 3). How much that loss costs in dollars is decided by your size, and lesson 7 shows how to pick it.

The stop goes at 4,090, a little below the whole zone. If price gets there, buyers did not hold the floor, and the reason for the trade is gone.

Step 3

The take profit: where you take the money

The take profit (or target) closes the trade when price reaches it. Aim for the next level in the way, and set it a little before that level, not on it or past it: price often turns just before a ceiling, and a target beyond it may never be reached.

The next ceiling, where sellers turned price down before. The target, the green line at 4,170, sits just before it.

Step 4

Risk to reward: is it worth it?

Measure two distances: entry to stop is your risk, entry to target is your reward. Here the risk is 20 and the reward is 60, so the risk to reward (R:R) is 1:3. If the target is closer than the stop, the plan risks more than it can make, and you usually skip it.

Traders call one unit of risk 1R. This plan risks 1R to make 3R. Lesson 8 shows why that changes how often you need to be right.

From the entry, the stop is 20 away and the target 60 away. Three times as much to gain as to lose: R:R 1:3.

Step 5

The same plan for a sell

Turn everything upside down. Sell just under a resistance zone (4,190), put the stop a little above the zone (4,210), and the target just above the next floor (4,130, with support at 4,120). Risk 20, reward 60: again 1:3. Lesson 1 showed that a sell gains when the price falls.

Price rises into the resistance zone and is pushed back down: sellers are there.

Step 6

Read a plan card

Every plan the AI in AiTradely writes uses the same parts, so you can check it against this lesson. The green numbers on the screenshot match:

Entry, here a buy limit: the order waits for price to come down to it.
Stop loss, where the idea is wrong.
Take profit, where the money is taken.
R:R: 1:1.0 means the target is as far away as the stop.
Good for: how long the plan stays valid. After that, the market has moved on: cancel the order.

A trade plan in AiTradely: entry, stop loss, take profit, R:R and how long the plan is good for — A plan in the app on 20 October 2026

Watch out. Never move your stop further away once the trade is open. It turns a small loss you planned into a big one you did not.

Words

New words in this lesson

Entry: The price where you get into the trade, chosen for a reason.Like: the platform where you board the train.
Market order: Buy or sell right now, at the current price.Like: paying the price on the tag today.
Limit order: An order that waits for a better price before it fills.Like: telling the shop to call you if the jacket drops to your price.
Stop loss: An order that closes the trade at a loss if price reaches it.Like: the emergency brake: you hope not to need it, and you set it before the ride.
Take profit: An order that closes the trade at a gain if price reaches it.Like: getting off at your stop instead of riding to the end of the line.
Risk to reward (R:R): The distance to the stop compared with the distance to the target.Like: a bet where you put down 1 to win 3.
1R: One unit of risk: what you lose if the stop is hit.Like: the price of one ticket.

AI trade planGet an AI trade plan in secondsEntry, stop loss and take profit for any market, with the reason for each and the risk to reward.

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An AI trade plan: entry, stop loss, take profit and risk to reward

The trade plan