How to Write The Best Indices Trading Plan
The following is a trade plan example template of a best indices trading plan:
1. TRADING IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always start with a plan.
- Successful business planning will guide you to success, think of the indices trading plan as a map; it is a constant reminder of how you will consistently pull profits from the stock indexes trading market.
- Difference between a successful indices trader and a losing one is the indices trading plan.
2. TO KEEP ME IN THE RIGHT DIRECTION
Consistency is important in your routine to measure how successful you are.
Keep you on target, read your indices trading plan every day and stick to it.
When it comes to your indices trade plan you should think of it as a map that shows you this is what you follow, it should have clear indices trading rules that specify when you open or close a indices trade transaction.
Your indices trading plan should cover all aspects of indices trading, you should read your indices trading plan every day until it is on your fingertips so that when you are trading on the fast moving market of indices trading you will always know what to do in every situation.
Your indices trading plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a indices trading plan you have an advantage over the stock indexes trading market, you will have better odds of making a profit than those indices traders who do not have a indices trade plan.
This indices trading plan tutorial topic provides indices traders with an example indices trading plan template that you can use for creating your own indices trade plan. By now you have already written down the justification part of your indices trading plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the stock indexes trading system.
Indices Trading plan is one of the secrets that can help you to improve your profits. A good indices trading training guide like this one should show you how to come up with a indices trading plan using a indices trading plan template which you can use as an example to develop your own.
One of the most common question is, Is Indices Trading profitable? one of the methods to make it profitable is to have a good indices trade plan.
IF YOU HAVE A GOOD BUSINESS PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT YOU WILL BE SUCCESSFUL.
GOALS OF THE Indices TRADING SYSTEM
- Ability to IDENTIFY A Indices TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The indices trading system should find a compromise between the two Goals,
Find a way to identify a indices trend as early as possible but also find ways to help you distinguish the fake signals from the real ones.
FUNCTIONS OF EACH Indices INDICATOR
MA - Identify a new indices trend as early as possible.
MACD - Identify a indices trend as early as possible.
Determine strength of a continuing indices trend.
RSI - Swing failure to confirm the start of a new indices trend.
Extra confirmation stock indices indicators and tools to help determine the strength of our indices trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the indices trend.
Indices Trend Lines - Signals a reversal when the indices trend line is broken
Indices Price Action Signals - confirm the weakening of a indices trend.
Bollinger Bands - for stock indexes price action study
To learn and know more about each stock indices indicator and how these stock indices indicators can be used to generate stock indices signal setups you can go to the Indices Indicators Section
CHART TIME FRAMES
- Main indices chart time frame is the 1H.
- Indices Trading Signals are generated on the 15 minute chart time frame.
15 Minutes Indices Trading Charts
- Indices Trend Lines (Support&Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
Indices Trading System RULES
15 Minutes Charts
- Both MAs are moving UP
- MACD moving UP
- RSI > 50
- Parabolic SAR is below the stock indexes price (Support)
When a stock indices signal is generated on the 1 Hour Chart, use the 15 minute chart time frame to open and close positions.
- RSI gives opposite trading signal
- Indices Price breaks Support Indices Trend Line
- Parabolic SAR is hit (Trailing Stop)
15 Minutes Charts
- Both MAs are moving DOWN
- MACD moving DOWN
- RSI < 50
- Parabolic SAR is above the stock indexes price (Support)
When signal is generated on the 1 Hour Chart, use the 15 minute chart time frame to open and close positions.
- RSI gives opposite trading signal
- Indices Price action breaks Support Indices Trend Line
- Parabolic SAR is hit (Trailing Stop)
- stock indices signals are generated using 1H indices chart time frame and executed using the 15 minute indices chart time frame.
- stock indices signal to be executed immediately rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies and online indices brokers are open for transactions. Use this to come up with a suitable indices trading schedule.
Indices Trading Tips - You can use the MetaTrader 4 Indices Trading Software Platform to save this indices trading plan example as a indices trading template on the MetaTrader 4 stock indexes trading platform - that way you do not have to lay it afresh every time you open a new stock indexes trading chart. If you want to learn how to save a indices trading template on the MetaTrader 4 stock indexes trading platform, read: MetaTrader 4 Indices Trading Platform Tutorials.
MONEY MANAGEMENT RULES
- Day trading - Low risk High return method
- Trade when I have a high risk to reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Indices Trading Pips
- Never transact beyond 3 % of indices trading account equity
- Never risk more than 2 % on a single trade transaction
- Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the indices trading system!
It is not to decide which signal looks promising.
That is the job of my indices trading system - which has a set of trading rules which tells me this is what I follow. Do not get caught up in stock indexes price action and make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my indices trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the indices trade plan as outlined.
Taking trades not indicated by the indices trading system, second guessing the stock indexes trading system and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my indices trading rules accurately.
The more you develop the ability to step back from stock indexes price movement and watch the stock indexes trading market dispassionately, waiting for a signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Indices Trading psychology to help you overcome them.
NB: by writing down your weaknesses you will start recognizing them as you make progress, once you do this you will start to avoid this mistakes and your trading results will improve.
- To focus on exit just as much as I do on entry signals.
- Always protect my indices trading account using stop loss, indices trading money management methods, follow with the indices trend direction and always following the rules of my indices trading strategy.
- Never second guess or go against my indices trading strategy.
To always keep up my discipline.
- Follow all the rules of my indices trading strategy and never break them.
- Trade fewer times and execute all my indices trade signals correctly.
Trade what I see, what the indices trading system + stock indexes trading charts are telling me.
- Sit patiently and wait for indices trading signals from my indices trading strategy.
- Achieve consistent profitable results before opening a live stock indexes trading account.
FOLLOW THIS SYSTEM
This is the most important part of creating the indices trading system.
Always follow the indices trading rules
Stick with the indices trading rules
Be disciplined and patient enough
Log all my indices trade transactions in a indices trading journal so as to track my training progress and improve my indices trading execution methods.
The indices trading strategy uses momentum to determine the indices trend of any indices.
Even if you are new to stock indices market and you do not know how a indices trading system looks like, this stock indexes trading system example illustrates to you how a system indices trading strategy should look like, the Indices Trading tutorials explained in other sections of this learn indices trading training website will also explain further the different aspects that you need to learn.
Hence, the aim is to help you come up with your own complete indices trading strategy that is if you are looking for one, by showing you one that is already complete. In fact you can just use this indices trading plan example as it is, or make a few adjustments so that it suits your indices trading style.
The aim is to help you improve your indices trading results by using a indices trading plan that is written, and another advantage is that this indices trade plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the stock indexes trading market.
Read this indices trading plan training tutorial about developing a indices trade plan of your own, along with the learn indices trading courses and indices trading strategies listed at the top of this learn indices trading tutorial.
The Most Beneficial part of using this indices trading plan template is the "Indices Trading Money Management Part" you will learn how to trade indices and minimize risk, which is the most important thing when it comes to the stock indexes trading market trading.