Trade Stock Indices

STOCK INDICES TRADING PLAN - EXAMPLE OF TRADING PLAN SAMPLE

Illustrated below is a sample plan that a stock index trader can adapt as a foundation for creating their own personalized strategy.

JUSTIFICATION FOR PLAN

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

  • Businesses that are successful always start with a plan.
  • Successful biz plan will lesson you to success, think of your trade 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

Maintaining consistency within your daily routine is paramount for accurately assessing your performance as a trader.

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

SUCCESS IS ATTAINED IF YOU POSSESS A SOUND STRATEGY AND MAINTAIN SUFFICIENT DISCIPLINE TO ADHERE TO IT RIGIDLY.

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/execute a buy trade we shall wait for a price pull-back & buy these dips.

TREND DIRECTION

BULLISH BUY TRADES ONLY

WAIT FOR RETREATS - PURCHASE THE DIPS.

TRADING SYSTEM

GOALS OF THE SYSTEM

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


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

Discover a way to spot a trend as early as you can, and also find ways to help you tell real signals from fake ones.

THE FUNCTIONS OF EACH OOF--THEE INDICATOR

Moving Averages(MA) - 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.


1H

  • 5 & 7 L MA
  • RSI (14)


RULES

LONG ENTRY

1H Chart

  1. Both MAs Moving Averages are moving UP
  2. RSI higher than 50


LONG EXIT

  1. Moving Average gives and generates in the opposite market trend signal


TRADE ROUTINE

  1. Signals are generated using 1H time frame.
  2. Trading Signals to be executed immediately the trading rules are met/matched ( Not Before ).
  3. Entry signals should be executed during daytime.
  4. 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.


It is not my role to be the system!

It is not to decide which trade positions looks promising.

This process is structured by my FX system, which provides a comprehensive set of rules. I follow these rules strictly, avoiding impulsive decisions or creating strategies on-the-fly based solely on price action.

MY JOB IS

I wait calmly for my system to signal entry or exit. Then, I focus sharply and place the trade as planned.

Refraining from executing trades suggested by the trading system, second-guessing the system, failing to take trade positions that are provided, hesitating, and entering late, or trying to predict and enter early are all frequent occurrences that may be summed up as a lack of confidence in the system and a lack of focus on precise execution.

Objective: Maintain 100% undivided focus to master and execute your trading strategy with precision.

As you build the skill to step back from market action and observe without bias, waiting for a signal, you handle your emotions better. Don't get caught in their ups and downs. Stay on track.

WEAKNESS

  1. I am greedy.
  2. I overtrade
  3. Make a listing of all your weaknesses which 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.


Note: by writing down your weaknesses you'll begin recognizing them as you trade, once you do this you'll begin and begin 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 rightly. Trade what I see, what the trading strategy + charts are telling me.
  • Sit patiently and wait for signals from my trading strategy.
  • Achieve consistent profitable trading results.


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

ADHERE TO THIS TRADING SYSTEM.

Building the System Starts with This Key Step.

Always follow the rules

Stick with the trade rules

Maintain discipline and exercise patience.

JOURNAL

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

Obtain Further Directions & Instructional Material:

Stock Indices Broker