A trading plan is a comprehensive document that outlines an investor's or trader's strategy for buying and selling securities. It includes specific guidelines on when to enter and exit positions, how much capital to allocate to each trade, risk management techniques, and emotional control strategies. The goal of a trading plan is to help investors make consistent, profitable trades by providing a clear roadmap for their actions in the market. By following a well-defined trading plan, investors can minimize impulsive decisions and reduce the likelihood of incurring significant losses.