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 Index Rules For Your Trade Strategy & 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 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 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 the Right Stock Indices

Once you have your Stock Strategy, you'll want to start testing it on a demo practice trade account. 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 Principles

Always risk less than 2 % per trade transaction. With compounding, you'll 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 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 & why it was not.

6. Set 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-trading and also will stop you giving back your trading profits to the market. Keep your risk reward ratio high, a 3:1 risk : reward ratio is best. This means opening Stock Index trade transactions only when you have got the probability of earning 3 times what you're risking.

Explanation of signals generated/derived by our Stock Index trading Strategy

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

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

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