Trade Stock Indices

The Best Way to Learn Trading

The best way to learn trading is to learn how to come up with a Indices plan. The indices plan is the tool that every trader will use to determine when to open stock trades & when to close stock trades and what strategy will be used to determine when to open and close stock trades.

In order to come up with the best indices plan a trader must learn how to go about doing the following.

A Trader Should Find the Best Trading Strategy for Their Trading Style

To become successful in stock indices trading - traders need to come up with a indices plan that's suited for their style method and trading personality.

A trader should look to find a indices method that can identify the market trends early and allow the trader to open trades in the direction of the market trend. In trading the most reliable method that's proven to make profits most of the time is following the general market trend.

In trading once prices start to move in a particular direction, the prices will move in that direction for some time because the market trends have momentum and this trend momentum will mean a trend will continue to move in direction of the trend for some time.

Once one selects a strategy that will help them to identify trends and open stock trades in direction of the market trend a trader can then use this indices strategy & write it down on their indices trading Plan.

Creating a Indices Plan

A plan is a set of indices rules and guidelines that help stock traders to organize and structure their trading in a particular way that's easy for a trader to follow when trading the online market.

The indices plan will have different sections that will specify different aspects of trading that the trader will follow when trading the market. The different sections of a indices plan are:

Chart Time-frame the Trader Will Be Using

The indices plan should specify which chart timeframe a trader will be trading with. If one is a scalper then plan will specify the 1 minute chart timeframe, for day traders the chart timeframe will specify the 5 minutes chart timeframe or 15 minutes chart timeframe and for swing traders the 1 hour chart timeframe.

Indices Charts Traded

A plan should specify which trading instruments you as a trader will be trading.

Indices System Rules

This system rules section will specify when a trader will open a buy or sell trade & when a stock index trader will close a trade.

This indices rules section will determine the rules of the entry & exit based on the trading system that the trader is using. If a indices trader is using a technical indicator based system, then the rules will specify when to open a trade when the rules of an entry trade setup are met and when to close a trade when the rules of an exit setup are met.

Stock Money Management Guides

A plan should specify the trading money management rules that a trader will follow when trading indices. The indices money management rules will specify what percentage of account balance a trader will risk on each trade position. A trader may decide to only risk up to 2% maximum on any one single trade transaction.

Practice Indices Trading with Your Indices Plan on a Practice Account

After coming up with your indices plan you should then test it on a practice account before trading with it on a real account. By using the plan on a demo account a trader can learn how to trade with the plan on a practice environment and learn the required discipline that is needed to trade indices using this indices plan on the real market.

Once a trader has tested the plan on a demo account and plan is profitable on the demo account - a trader can then open a real account & trade on this real account with this indices plan.

Keep a Indices Journal of All Trades Opened

A trader should keep a journal of all stock trades that are generated by this indices plan. As a trader it is always good to keep a journal and write down all the stock trades that you open in this journal, write why you opened each trade, when you closed the trade & also the amount of profit or loss generated from that trade transaction.

After a while you can then review all the stock trades you have opened - try and look at why the losing stock trades made losses and why the winning stock trades were successful and after which you can then try and do more of what makes you successful & less of what's making you to open losing trades and that way keep on improving on your strategy.

As a trader if you don't maintain a trading journal you might continue making same mistakes over and over again without even knowing it, but if you keep a indices journal & keep reviewing this journal from time to time then you give yourself a chance to identify the mistakes you make in indices from reviewing your journal periodically.

This way you can then increase the percentage of your winning stock trades. You also can increase your profits and reduce your risk per trade because by increasing the percentage of your winning stock trades and reducing your losing stock trades - your indices plan can then make more money and help you to become more successful in stock indices trading & more profitable.

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