Trading strategies for beginners step by step

Tips for Trade Strategies for Beginner Traders - Tips for Indices Traders Strategies When Trading Online

1. Define Simple Stock Indices Rules For Your Trade Strategy & Follow the Market Trend

The simpler the Strategy is the better. If the Stock Index trading Strategy is too complicated, it will be very difficult to stick to the Indices strategy trading rules. Complicated Strategies are also very confusing. A simple Strategy makes it easy to follow the trading rules.

2. Eliminate Risk Quickly & Let Profits Run

Minimizing risk is far more important than making money. Our first objective in Indices is to make the trade less risky. We do this by entering only high probability trade setups, setting stop losses, cutting losses quick and never average down, & letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable trades are only kept open as long as the Strategy shows the trend is in place, these stock indices trade transactions should be closed immediately once your exit signal criteria is generated by the Strategy.

3. Select the Right Indices

Once you have your Stock Strategy, you will want to start testing it on a demo practice trade account. Stock Index have their own characteristics different from others. A trading Strategy will give different results for each Indices.

To maximize the profitability of your trade strategy find the most active market hours for a chosen index & trade during that market session only.

4. Use Money Management Rules

Always risk less than 2 % per trade transaction. With compounding, you will be surprised to see how quickly your account grows once you begin to trade with a profitable Strategy.

5. Keep a Journal

Keeping a log of all your trades will help you to become a better and better and will help you follow the trading rules of your Indices Strategy. A journal will also keep track of your profitable trades & losses & you can analyze why a stock indices trade setup was profitable & why it was not.

6. Set take Profit Targets

Establish a daily, weekly or monthly profit targets when trading the Index. Once you hit this target. This will stop you from over-trading and also will stop you giving back your profits the market. Keep your risk reward ratio high, a 3:1 risk : reward ratio is best. This means opening Stock Indices trade transactions only when you have the probability of making three times what you're risking.

Example of signals generated by our Stock Index trading Strategy

Example 1: Buy Signal & Sell Signal Generated By Trade System

Indices Tips for Indices Strategy for Beginners - How to Understand Signal

Buy signal is generated by the indicator based Strategy, then an exit signal is generated before another reverse sell signal is generated on this trade chart