Your First Plan: Chart, Simulator, Journal
You do not need fancy indicators to start. You need to read a basic chart, write a plan, practice it without real money, and keep score.
Read a candle
Each candle shows four prices for one time period: the open, the high, the low and the close. A teal candle closed higher than it opened. A red candle closed lower. The thin lines, called wicks, mark the high and the low. The bars under the chart show volume: how many contracts traded.
Write a one-page plan
- Market: which contract, and why a micro to start.
- Window: the one session you will trade (Lesson 4).
- Setup: what you wait for, in your own words.
- Entry, stop and target: set as a bracket (Lesson 3).
- Size: from the formula (Lesson 5).
- Daily stop: when you are done for the day, win or lose.
Practice on a simulator first
Most brokers and charting platforms offer a simulator, also called a paper account. CME has a free trading simulator too. Trade your plan there for at least 20 trades. You are not testing if you can make money yet. You are testing if you can follow your own rules.
Keep a journal
After every trade, write three things: Did I follow my plan, yes or no? What did I feel before I clicked? What will I do the same or different next time? Add a screenshot. Read the week back every Friday. Your journal will show you a pattern long before your account does.
What comes next
Most traders who struggle know their setup. They break their rules under pressure. Our free Psychology Guide is the next step for that.
All Futures 101 lessons
- Lesson 1: Points, ticks and dollar value
- Lesson 2: Margin, leverage and daily settlement
- Lesson 3: Order types and bracket orders
- Lesson 4: Sessions, holidays and the roll
- Lesson 5: Risk per trade with micros
- Lesson 6: Your first plan: chart, simulator, journal (you are here)
Mahalo for reading and trade well!
Glenn & Reid | Hawaiʻi Trading Academy
Risk disclaimer: Trading futures involves substantial risk of loss and is not suitable for every investor. You can lose more than your initial deposit. Examples on this page use made-up numbers to teach the math. Past performance does not guarantee future results. Hawaiʻi Trading Academy provides education only. We are not financial advisors, and nothing on this page is a recommendation to buy or sell any financial product. CME Group is an independent exchange; HTA is not affiliated with it. Contract details can change; check CME before you trade.
