Indices Plan Sample
The trading plan is logical approach to trading which controls all 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 into simple to follow instructions or a trading checklist 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 transactions 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 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 can expect to achieve in real stock indices trading.
Indices Plan Template
To write a good indices plan, you will need a good indices plan template that as a trader you can use to create your own indices plan. But before you download 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.
Indices TRADING SYSTEM
This is the trading plan part where you include your trading system. In this section you'll write the indicators to trade with, then you will write the trading system rules that you'll generate the signals with.
For more tutorials about indices trading systems
TIMEFRAME
This is where you specify which is the main chart time frame that you will be trading with.
TRADE ROUTINE
This is the part as a trader that you have to specify the time when you will be trading the stock trading market and when you generate stock signals and how these signals should be generated. For examples:
- Signals are generated using 1 Hour chart time frame.
- Signals to be executed immediately rules are met.
- Entry signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET
Watch market during daytime & trade only during the best hours
MONEY MANAGEMENT
This is the part where as a trader you will specify the trading money management rules that you will follow, for example:
- Day trading -Low risk High return method
- Trade when I have a high risk:reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 100 Pips
- Never trade beyond 3 % of trading account balance
- Never risk more than 2 % on one trade
To learn & know more about indices money management
MINDSET/PSYCHOLOGYMINDSET--and--PSYCHOLOGYMINDSET--&--PSYCHOLOGY
This is the part you specify about your psychology rules
- Trade without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
- I trade what I see not what I feel.
- I--willI'll be patient.
My job description isn't to be the trading system!
It isn't to decide which trades looks promising.
Indices Psychology Rules and Tutorials:
- Indices Psychology
- Indices Psychology & Emotions
- Indices Psychology Guidelines
- Indices Psychology Rules
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 overtrade
- Make a listing of all your weaknesses that are interfering with your trading. This is the first step to help you to overcome these weaknesses. Use psychology to help you to overcome them.
GOALS
Write the goals you want to achieve with your trading plan
·To focus on exit just as much as I do on entry.
·Always protect my account using stop loss, indices money management strategies, trading with the trend & always following the rules of my indices trading system & 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 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 progress of your trading.
