Strategies for beginner traders step by step
Tips for Trade Strategies for Beginner Traders - Tips for Indices Traders Strategies When Trading Online
1. Define Simple Index Rules For Your Trading Strategy and Follow the Market Trend
The simpler the Trading Method/Strategy is the better. If the Stock Index trading Strategy is too complicated, it will be very hard to stick to the Indices strategy rules. Complicated Strategies are also very confusing. A simple Trading Method makes it easy to follow the trading rules.
2. Eliminate Risk Quickly and Let Profits Run
Minimizing risk is far more important than earning money. Our first impartial in Indices is to make the trade less risky. We achieve this by entering only high probability trade setups, setting stop losses, cutting losses quick & never average down, letting the profitable trades run for a while, just long enough, but not too long, so as to increase profits. Profitable trades are only kept and held open as long as the strategy shows the trend is in place, these stock indices trade positions should be closed immediately once your exit signal criteria is given by the Strategy.
3. Select & Choose the Right Stock Indices
Once you've your Stock Trading Method, you'll want to start & begin testing it on a demo practice trade account. Index have their characteristics different from others. A Method will give different results for each Stock Index.
- EURO STOXX 50 Index
- DAX 30 Index
- Dow Jones Industrial Average 30 Index
- FTSE 100 Index
- Nikkei 225 Index
- S&P ASX 200 Index
- FTSE MIB 40 Index
- S & P 500 Index
- NASDAQ 100 Index
- CAC 40 Index
- SMI 20 Index
- AEX 25 Index
- Hang Seng 50 Index
- IBEX 35 Index
To maximize the profitability of your trading strategy find the most active market hours for a chosen index & trade during that session only.
4. Use Money Management Guidelines
Always risk less than 2 % per trade transaction. With compounding, you'll be surprised to observe how quickly your account grows once you begin to trade with a profitable Strategy.
5. Keep a Journal
Keeping a log of all your positions will help you as a trader to become a better & better & will help you as a trader follow the trading rules of your Stock Indices Strategy. A journal will also keep track of your trading profitable trades and losses and you as a Stock Index trader can analyze and interpret why a stock indices trade setup was profitable and why it was not.
6. Add take Profit Targets
Establish a daily, weekly or monthly profit targets when trading the Index. Once you hit and achieve this target, stop trading & take a break from the market. This will stop you from over-and also will stop you giving back your trading profits to the market. Keep your risk reward ratio high, a 3:1 risk to reward ratio is best. This means opening Stock Index trade transactions only when you have got the probability of earning 3 times what you are risking.
Explanation of signals generated/derived by our Stock Index trading Strategy
Example 1: Buy Signal & Sell Signal Generated By Trading System
Buy signal is derived/generated by the technical indicator based Strategy, then an exit signal is generated/derived before another reverse sell signal is generated/derived on this trade chart
Example 2: 2 buy signals generated by Trading System
Two buy trading signals are generated during the upwards market trending market
Example 3: Exit Signal Generated by Trading System
Example of Signals Derived/Generated by a Trading System
Study More Topics:
- How Do I Trade Indices Trend Line Break Reversals in Indices Trade?
- How Can I Trade Flag Chart Pattern Setup Index Setup?
- HSI 50 Pips Calculation for HSI50 Index
- How Do I Trade a Buy Limit Index Order?
- Cent Index Trade Account Defined
- UK 100 Strategy and UK 100 Forex Strategy
- CAC 40 Strategies Tutorial
- Can I Trade US100 on MT5 Software?
- How Do You Place SWI 20 in MT5 iPhone App?
- DJ30 Strategy How to Create Strategy for DJ30 Guide
