How to Identify Your Strengths and Build a Trading Plan That Works for You

Reading Time: 4 min

A while back, one of my clients, Jake, came to me frustrated. He had spent years refining and tweaking his trading strategy—adjusting indicators, backtesting new setups, adding filters to improve his entries.

But no matter what he did, his results stayed the same: inconsistent.

“I just need to fine-tune my strategy,” he told me.

I asked him, “Okay, let’s say I hand you the most profitable trading strategy in the world. Do you believe you’d execute it perfectly, without hesitation, without breaking your rules?”

He hesitated.

And THAT was the real problem.

Jake’s inconsistency wasn’t caused by his strategy—it was caused by his emotions, hesitation, impulsive decisions, and inability to trust himself when faced with uncertainty.

Most traders focus so much on trying to find the perfect system that they ignore the real key to success: aligning their trading with their natural strengths, their emotional patterns, and their decision-making tendencies.

That’s what this blog is about. It is not about finding some cookie-cutter system but about building a trading plan that works for YOU.

(And if you’re looking for a simple tool to help you build your personalized trading routine, check out my Trader’s Good Habit Tracker!)

Step 1: Identify Your Strengths in Trading

Most traders log what they traded. Few journal what was happening inside them while trading.

And that’s where the REAL, MOST POWERFUL insights come from.

Your trading performance isn’t just shaped by your strategy—it’s shaped by you, the trader. Every decision you make is influenced by your emotions, thoughts, and external factors.

Think about it:

✔ Were you feeling confident or doubtful when you placed that trade?
✔ Did external stress (like work, family, or exhaustion) impact your decisions?
✔ Were you rushing because you wanted to “make back” losses?
✔ Were you distracted by the news, social media, or another trader’s opinions?

I had a client, Sarah, who struggled with revenge trading. She kept chasing losses, overtrading out of frustration. When she started journaling, she realized something:

💡 Every time she had a losing trade, her next trade was riskier and more impulsive.

Why? Because she wasn’t just reacting to the market—she was reacting to her emotions.

A powerful trading journal doesn’t just track wins and losses—it helps you understand the hidden forces driving your decisions. This self-awareness is what allows you to make lasting improvements in your trading.

What If I Haven’t Journaled Before?

No need for spreadsheets, complicated templates, or writing long essays. Keep it simple.

All you need is to answer one question after each trading day:

💡 What was happening in me and around me before, during, and after my trades today?

Write just a few sentences. That’s it.

Not sure where to start? Try asking yourself these simple questions that I would ask to help you spot patterns:

• Did you take bigger risks when you were on a winning streak?
• Did you hesitate to enter trades after a loss?
• Did you feel the urge to make any decision when you saw others posting their trades?
• What external distractions (news, social media, personal stress) affected me?
• What emotions do you feel during your biggest winners/losers?
  
  

The goal is awareness. The more you recognize what affects your trading, the more control you’ll have over it.

Step 2: Address Your Weaknesses Without Overhauling Everything

You don’t need to eliminate every weakness to be profitable—just make sure they don’t interfere with your strengths. The right adjustments can turn struggles into advantages.

Common Trading Weaknesses & How to Address Them

• Emotional Trading (Fear/Greed) → Use a pre-trade checklist to ensure decisions are based on logic, not emotions.
• Lack of Consistency → Reduce market noise by sticking to one strategy and timeframe for 30 days.
• Impulsiveness & Overtrading →Set a maximum number of trades per day to keep yourself in check.
• Poor Risk Management → Define a fixed risk-per-trade percentage (such as 1%) and stick to it.
• Lack of Discipline → Use habit-stacking techniques to tie trading routines to existing habits and build consistency.

The key is to build safeguards, not strive for perfection.

Step 3: Build Your Trading Plan Around Your Strengths

Once you know your strengths and have safeguards for your weaknesses, it’s time to craft a plan that plays to your natural abilities.

Choose a Strategy That Matches Your Strengths

✔ If you’re patient and thrive on analysis, look for high-probability setups that require waiting for confirmation.
✔ If you’re quick and thrive on fast-paced decision-making, momentum trading might be a better fit.

Define Clear Risk Management Rules

✔ Set a maximum risk per trade (typically 1-2% of your account).
✔ Implement a daily loss limit to prevent tilt trading after losses.

Trade When You’re at Your Best

Your best trading hours matter! If you perform well in the morning but struggle in the afternoon, focus your efforts on the first few hours of the day. If you trade better after a good night’s sleep, avoid trading late at night.

 

Create an Emotional and Psychological Routine

✔ Develop a pre-market routine to get into the right mindset.
✔ Implement a post-trade routine to detach from emotions.

Trading is as much a mental game as it is a technical one. The more intentional you are about your mindset, the more stable your results will be.

If you’re looking for a simple way to build your personalized trading routine, check out the Trader’s Good Habit Tracker—a practical tool designed to help you build consistency and optimize your daily trading habits.

Final Thoughts

The best traders don’t force themselves into strategies that don’t fit them. They build a plan that aligns with their natural strengths while putting safeguards in place for their weaknesses.

Start by tracking your emotions, not just your trades. Identify what comes naturally to you and what tends to throw you off course.

Then, design a plan that works for you—not someone else.

Success in trading isn’t about chasing the perfect strategy. It’s about building a plan that works for YOU—one that aligns with your strengths, minimizes weaknesses, and helps you trade with confidence.