Proprietary trader Zhang Yangbin: How to use written plans to minimize on-the-spot emotional interference?

Many traders choose to trust their own judgment. When the market comes, take a look at the chart and enter the market; if the direction is right, continue to hold; if the direction is wrong, make temporary adjustments.

But Zhang Yangbin is different. Before placing an order, he will first write down the basis for entering the transaction, position arrangement, stop loss position, take profit target, and backup plan in case of unexpected market conditions.

For him, the trading plan is not a summary after the transaction, but the work that must be completed before the transaction begins. Since he came into contact with trading in 2014 and entered the foreign exchange market in 2019, this habit has become an important part of his trading system.

Understanding discipline from a lesson

When it comes to risk management, Zhang Yangbin did not have such a profound understanding from the beginning. In his early years of trading, he gradually relaxed his vigilance because of his continuous profits. During a non-agricultural data market, he chose to increase his position against the trend, which eventually led to the liquidation of his account.

“I went through a process from denial and anger to complete calmness.” This experience made him rethink the nature of trading. “This lesson made me ingrain risk management into my bones and understand that survival is a priority over profit.”

Since then, he began to shift his focus from income to risk, and put discipline at the core of the trading system.

Risk control is more important than predicting the market

In Zhang Yangbin’s view, the key to long-term stable profitability is not a high winning rate, but risk management and emotional control. He usually controls the risk of a single transaction to 1%-2% of the total risk. Even if there are continuous losses, he can control the account drawdown within an acceptable range.

For the market, he is more willing to accept uncertainty rather than trying to predict every market trend. Therefore, when a retracement occurs, he will not rush to make money, but will actively reduce positions, simplify operations, and return the focus to the execution level.

In his view, protecting principal is always more important than pursuing profits.

Every transaction must be planned first

Risk awareness is ultimately reflected in his trading habits. Zhang Yangbin insists on formulating a written plan for each transaction, including entry and exit basis, position management, stop loss and profit, and backup plans.

“I insist on formulating a written plan for each transaction, including entry and exit basis, position, stop loss and profit, and backup plan. During execution, I regard the plan as a discipline red line, paying special attention to unconditional stop loss.”

He believes that many trading errors do not come from analysis errors, but from execution deviations. In order to reduce emotional interference, he will complete all key decisions in advance as much as possible and minimize on-the-spot judgment.

In addition to making plans, he also checks execution through transaction logs and daily reviews. In his view, trading consistency does not mean continuous profits, but the long-term stable execution of a system with positive expected value.

“Any decision must be in line with the plan, avoid emotional operations on the spot, and let long-term probability advantage rather than a single result determine performance.”

This is also the reason why he understands the true value of a trading plan – the plan is not to predict the market, but to restrain himself.

Verification of trading ability in assessment

Currently, Zhang Yangbin is still trading part-time. Regarding taking the EagleTrader proprietary trading exam, he believes that the greatest value lies in verifying the stability of his own trading system.

“The biggest gain will be a valuable systematic stress test and self-verification.”

Under strict risk control rules and assessment requirements, traders not only need to face market fluctuations, but also face the challenges brought by execution discipline. This verification process is equally important for traders who want to move professionally.

What is the most important thing in trading?

At the end of the interview, Zhang Yangbin shared what he most wanted to tell traders:

“Trading is a practice of slow or fast. Please devote 90% of your energy to building your System, risk control and mentality, rather than predicting market trends.”

From his early liquidation experience to his insistence on making plans in advance for every transaction, Zhang Yangbin’s trading philosophy always revolves around the same core: respecting risks and respecting rules.

Because in the market, what really determines how far a trader can go is often not one correct judgment, but the ability to maintain consistent execution over the long term.