STOCK INDICES TRADING PLAN - EXAMPLE OF TRADING PLAN SAMPLE

Below is an example of a plan that a stock index trader can use as a template to come up with one of their own.

JUSTIFICATION FOR TRADING PLAN

1. TRADING IS A BUSINESS, BUSINESSES WHICH ARE SUCCESSFUL ALWAYS HAVE A PLAN

Businesses that are successful always begin with a plan.
Successful biz plan will lesson you to success, think of your plan as a map - it's a constant reminder of how you'll consistently pull trading profits from the stock index online trading market.
Difference between a successful trader and a losing trader is the plan.

2. TO KEEP ME IN THE RIGHT DIRECTION

Consistency is important in your routine to measure how successful you are as a trader.

Keep you on target, read it every day and stick to it.

IF YOU HAVE A GOOD PLAN AND YOU ARE DISCPLINED ENOUGH TO STICK TO IT YOU WILL BE SUCCESSFUL.

INDICES TRADING STRATEGY

Our strategy will only open bullish trades, this is because index moves are based on the principle that stock prices always move upward over time, therefore the index that track these stock prices movement will over time move in a general upwards direction. To open a buy trade we shall wait for a price pull-back & buy these dips.

TREND DIRECTION

BULLISH BUY TRADES ONLY

WAIT FOR PULLBACKS - BUY THE DIPS

TRADING SYSTEM

GOALS OF THE SYSTEM

Ability to IDENTIFY TREND AS EARLIEST AS POSSIBLE.
Ability to AVOID WHIPSAWS.

A Trading System should find a reasonable compromise between the 2 Goals,

Get a way to identify a trend as early as possible but also find ways to help you as a trader distinguish the fake signals from the real ones.

THE FUNCTIONS OF EACH OOF--THEE INDICATOR

Moving Average - Identify a new trend as earliest as possible.

RSI - Confirm the begin of a new trend.

TIMEFRAMES

Main timeframe is the 1H.
Signals are derived and generated on the 1H timeframe.

5 & 7 L MA
RSI (14)

RULES

LONG ENTRY

1H Chart

Both MAs Moving Averages are moving UP
RSI higher than 50

LONG EXIT

Moving Average gives and generates in the opposite market trend signal

TRADE ROUTINE

Signals are generated using 1 Hour timeframe.
Trading Signals to be executed immediately the trading rules are met/matched ( Not Before ).
Entry signals should be executed during daytime.
Close all trade transactions at the end of the trading day.

TIME OF DAY TO WATCH MARKET

Watch market during the daytime

Stock Index Plan - Trading Plan Index Trading

MONEY MANAGEMENT

Intraday trading - Low risk High return trading method

Trade when I have a high risk:reward ratio 3:1 or more

Never trade more than 10 % of trading account total account balance

Never risk more than 2 % on a single trade

MINDSET & PSYCHOLOGY

Trade without Emotions (greediness, fear, anticipation, impulse, bias, over-excitement)
I trade what I see and not what my--feelings--tell--me.
I'll be patient.

My job isn't to be the system!

It is not to decide which trade positions looks promising.

That's the job of my FX system. My system has got a set of rules which instruct me this is what I follow. Don't get caught up in price action & make rules & strategies as you go along.

MY JOB IS

To sit patiently and wait for my system to show that it's time to enter or it's time to exit. And then with great and extreme focus I execute trade as planned.

Taking trades not indicated by the trading system, second-guessing the system & not taking trade positions given, hesitating and getting in late, anticipating and getting in early are all common-place & boil down to lack of faith in the system & not having a burning focus on accurate execution.

GOAL: To have 100% undivided focus on mastering ability to execute my system accurately.

The more you develop the ability to step back from market movements & watch the market dispassionately, waiting for a trade signal to trade, easier it'll be to witness the fluctuations/oscillations of your emotions without getting sucked into them allowing them to throw you off your game.

WEAKNESS

I am greedy.
I overtrade
Make a listing of all your weaknesses that are interfering with your trading. This is the first step to help you to overcome the weaknesses. Use trading psychology to help you as a trader overcome them.

NB: by writing down your weaknesses you'll begin recognizing them as you trade, once you do this you'll begin and start to avoid this mistakes & your trading will improve.

GOALS

To focus on the exit just as much as I do on entry.
Always protect my account using stop loss, equity management methods, trading with the trend & always following the trade rules of my system & plan.
Never second guess or go against my system. To always keep up my trading discipline.
Follow all the rules of my system & never break them.
Trade fewer times and execute all my trades correctly. Trade what I see, what the system + charts are telling me.
Sit patiently and wait for signals from my system.
Achieve consistent profitable trading results.

Write down goals and focus on achieving these goals on your trading

FOLLOW THIS SYSTEM

This is the most important part of creating the system.

Always follow the rules

Stick with the trade rules

Be disciplined and patient enough

JOURNAL

Log all my trades in a journal so that as to track my progress.

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