Trading is hard. Making decisions in real time, under pressure, requires processing countless variables:
- What’s happening on the daily chart?
- What’s happening intraday?
- How does Level 2 look?
- What do I hope to see unfold?
Without preparation, many traders make decisions on the fly — often impulsively — only to look back at the end of the day and wonder, “What just happened?”
This is where game planning comes in.
Why Game Planning Matters
A well-thought-out game plan helps you:
- Reduce stress — Predefining setups, entries, and exits cuts down emotional decision-making.
- Execute faster — Every second counts in volatile markets. If you’ve mentally rehearsed your actions, you can strike the iron while it’s hot.
- Objectively evaluate performance — Without a plan, you can’t measure whether you traded well. With one, you can compare your execution to your intended plan.
Think about it like this: Two traders face a highly anticipated event in a volatile sector. Trader A “wings it.” Trader B reviews liquid, volatile tickers, plans position sizing, anticipates “what-if” scenarios, and mentally rehearses the trade. When the opportunity hits, Trader B executes with speed, clarity, and confidence — leaving Trader A behind.
The Four Steps of Game Planning
1. Identify High-Priority Stocks
Start by creating a watchlist, ranked by potential expected value:
- Tier A: High-probability trades — top focus.
- Tier B: Medium-probability trades — worth monitoring.
- Tier C: Low-probability trades — keep an eye for correlation or unexpected setups.
Consider factors like liquidity, volatility, chart patterns, and sector correlation.
2. Define Your Setups
For each stock on your watchlist, ask:
- Where can I enter with edge?
- What signals or patterns matter? (Support/resistance, prior bar highs/lows, breakouts)
- Where will I place stops and exits?
Patience is key: even a Tier C stock can produce a high-expected-value setup if the right conditions align.
3. Plan “What-If” Scenarios
Ask yourself:
- What if price moves aggressively against me?
- What if it moves in my favor?
- How much do I risk in each case?
- What’s the worst-case scenario?
Write out or mentally rehearse these scenarios to prepare for both expected and unexpected outcomes. This reduces reaction time when the market moves fast.
4. Adapt and Adjust
No plan survives without review.
- At the end of the day, evaluate how well your game plan held up.
- Adjust setups, watchlists, and sizing rules for future trades.
- Treat game planning as a skill — the more you practice, the better your decisions under pressure.
Remember: game planning isn’t about predicting the future. It’s about preparing to react decisively when scenarios you anticipate actually occur.
Key Benefits of Game Planning
| Benefit | Why It Matters |
| Reduces stress | Limits emotional decisions when adrenaline runs high |
| Faster execution | Saves mental processing time during volatile moves |
| Objective evaluation | Lets you compare execution to plan |
| Prepares for contingencies | Covers likely, possible, and extreme outcomes |
| Improves collaboration | Sharing “if-then” scenarios strengthens team decision-making |
Final Thoughts
Game planning is a tool the pros use daily — from prop desk traders to mentors at SMB Capital. By thinking through setups, entries, exits, and “what-if” scenarios before the market opens, you:
- Minimize emotional reactivity
- Increase speed and precision
- Build confidence in your execution
Every second saved in mental processing can make the difference between success and regret.
If the pros do it, so should you. Start building your game plan today, rehearse it mentally, and see your trading elevate to a whole new level.
If you’re a struggling trader, it’s also important to remember that time is a big factor toward creating your success. Read my post on “Rookie Hours” to learn more!
