Index Plan Sample

A trading plan is a logical approach to trading that controls all the aspects of the trading.

If you trade indices, you need a trading plan template if you want to become a consistent winner and to be able to make trading decisions fast & accurately.

Each trading plan template will have its own indices rules that have been sets describing entry and exit trading signals. The trading rules set for each system are converted in to simple to follow guide-lines or a trading check-list template that the trader can easily follow.

This trading checklist template will direct the whole trading process of trading - controlling the timing of the trade entries & exits ( trading system), the value of opened stock trade positions in relation to the trading equity balance ( indices money management system) and the emotional state of the trader (emotion management system). The resultant trade details & particulars should be recorded in the trading journal indices log and later studied for the ideas on how to improve each of the systems.

Trading is commonly compared to business. If indices trading is business then the trading plan is your business plan which should be prepared before you start trading with the real money. Better you prepare this trading plan -indices trading checklist template, the more success you as a stock indices trader can expect to achieve in real indices trading.

Index Plan Template

To write a good indices plan, you'll need a good indices plan template that as a trader you as a stock indices trader can use to create your own indices plan. But before downloading the trading plan, here is an explanation of the various trading plan indices trading checklist sections that your trading plan requires to have.

JUSTIFICATION

This part of your trading plan will write why you require a trading plan, one of the reason is that indices trading is a business.

Index TRADING SYSTEM

This is the trading plan part where you include your trading system. In this section you'll write the trading indicators to trade with, then you'll write thetrade system rules that you'll generate the signals with.

For more tutorials about indices trading systems

Trade Systems

How to design Strategies

How to Write System Rules

Generating Signals

Tips for Trading Strategies

Trading Journals.

TIMEFRAME

This is where you specify which is the main chart time frame that you'll be trading with.

Types of Traders - Day Trading and Swing Trading

TRADE ROUTINE

This is the part as a trader that you have to specify the time when you'll be trading the stock trading market and when you generate stock signals and how these trade signals should be generated. For examples:

Signals are generated using 1 Hour chart time=frame.
Signals to be executed immediately the trading rules are met
Entry signals should be executed during daytime.

TIME OF THE DAY TO WATCH THE MARKET

Watch market during daytime & trade only during the best hours

MONEY MANAGEMENT

This is the part where as a trader you'll specify the trading money management rules that you'll follow, for example:

Day trading - Low risk High return trading method
Trade when I have a high risk : reward ratio 3:1 or more
Stop loss = Parabolic SAR

Set TP Order target 100 Pips
Never trade beyond 3 % of trading account balance
Never risk more than 2 percentage on one trade

To learn & know more about indices money management

MINDSET/PSYCHOLOGY

This is the part you specify about your mindset psychology rules

Trade without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
I trade what I see on the charts & not what I--feelI--am--feelingMy--feelings--are--telling--me.
I'll be patient.

My job description isn't to be the trading system!

It isn't to decide which trade positions looks promising and which doesn't.

Stock Index Psychology Rules and Tutorials:

WEAKNESS

By writing down your weaknesses you'll begin recognizing them as you trade, once you do this you'll begin to avoid this mistakes and your trading will improve.

For Example

I am greedy.
I over-trade
Make a listing of all your weaknesses that are interfering with your trading. This is the first step to helping you to overcome these weaknesses. Use trading psychology to help you as a trader to overcome them.

GOALS

Write the goals you as the trader want to achieve with your trading plan

·To focus on the exit signal just as much as I do on the entry.

·Always protect my trading account using stop loss order, indices money management strategies, trading with the trend & always following the trade rules of my indices trading system and plan.

·Never second guess or go against my stock system.

FOLLOW THIS SYSTEM

This is the most critical part of creating the system.

·Always follow the trade rules

·Stick with the rules

·Be disciplined & patient enough

JOURNAL

Log all my trades in a journal so as to track my progress. Write your Trades on a trading journal to track the progress of your trading.

How to Write a Journal

Study More Lessons and Courses:

Trade Stock Indices

Index Plan Sample

Index Plan Template