Trade Stock Indices

How to Write a Good Indices Plan

plan check-list - the following is a template model of a trading plan template example:

JUSTIFICATION

1. Stock Index IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE A PLAN

  • Businesses that are successful always begin with a plan.
  • Successful business planning will lesson you to success, think of trade plan as a map: it is a constant reminder of how you'll consistently pull profits from the trading market.
  • Difference between a successful trader & a losing indices trading one is the trade plan.

2. TO HELP KEEP ME IN THE RIGHT DIRECTION when Trading Indices

Consistency is important in your routine to measure how successful you are.

Keep you as a stock indices trader on target, study the trade plan every day and stick to its rules.

In your plan template you should think of it as a map which shows to you this is what you follow, it should have clear guide-lines that specify when you open or close a trade.

Your trade plan should thoroughly cover all factors of trading, you should study the plan every day until it is on your fingertips so that when you're transacting on the fast moving market of trading you'll always know what to do in every situation.

Your trading plan can be as simple or as complicated as you want, but most important thing is that you as a trader have one. By having a one you have an advantage over the market, you'll have better chances of earning a profit than those who don't have one.

This trading plan checklist tutorial topic provides with an example plan illustration which you as a stock indices trader can use for developing your own trade system. By now you have already written and noted down the justification part of your trading plan template, If not get a pen and paper & write the justification part. Next we shall explore and look at how to writedown the system.

Index plan is one of the secrets which can help you as a trader to improve your trading profits. A good indices training guide like this one should explain to you how to come up with one using a trading plan template which you as a stock indices trader can use as an illustration to develop your own trade plan.

One of the most often asked question is, Is Stock Index trading profitable? one of the methods and ways to make it profitable is to have a good plan.

IF YOU HAVE A GOOD Indices PLAN & YOU ARE DISCIPLINED ENOUGH TO STICK TO IT When Index Trade, YOU WILL BE SUCCESSFUL.

OBJECTIVES AND GOALS OF THE TRADING SYSTEM

  1. Ability to IDENTIFY MARKET TREND AS EARLIEST AS POSSIBLE .
  2. Ability to AVOID WHIPSAWS .

The trade system should find a reasonable middle ground between the 2 Goals,

Find a way to identify a market trend as early as possible but also find methods to help you as a trader distinguish whipsaw signals from the real ones.

FUNCTIONS OF EACH OOF--THEE INDICATOR

Moving Average - Spot a new market trend as early as possible.

MACD - Identify a trend as early as possible.

Determine force of a continuing market trend.

RSI - Swing failure to confirm the start of a new trend.

Extra confirmation tools to help identify the strength of our trend.

Parabolic SAR - Help to ensure that we are not caught up on wrong side of the market trend.

Trend-Lines - Signals a reversal when the line is broken

Price Action Trading Signals - confirm weakening of a market trend.

Bollinger Bands - for the price action study

To learn and know more about each indicator & how these indicators can be used & combined together to generate signal setups you as a stock indices trader can go to Indicators Section

TRADING CHART TIMEFRAMES

  • Main chart time frame is the 1H.
  • Signals are generated on 15 minute timeframe.

15 Minutes Charts

  • Trend-lines (Support and Resistance)
  • 5 & 7 LWMA
  • RSI (14)
  • Bollinger Band (20, 2)

RULES

LONG ENTRY

Entry

15 Minutes Charts

  1. Both MAs are moving UP
  2. MACD Above Zero Centerline (Not MACD heading UP)
  3. RSI >-> 50
  4. Parabolic SAR technical is below the price (Support)

When signal is generated on the 1 Hour Chart, use the 15 minute chart time frame to open and close out positions.

LONG EXIT

  1. RSI provides a in the opposite market trend signal
  2. Price breaks Support Trendline
  3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

  1. Both MAs Moving Averages are heading DOWN
  2. MACD Below Zero Centerline (Not MACD moving Down)
  3. RSI <-< 50
  4. Parabolic SAR technical is above the price (Support)

When signal is generated on 1 H Chart, use the 15 minute chart time frame to open and close trade positions.

SHORT EXIT

  1. RSI gives a in the opposite trend signal
  2. Price action breaks Support Trend Line
  3. Parabolic SAR Indicator is hit (Trailing Stop)

ROUTINE

  1. Signals are generated using 1H chart time frame and executed using the 15 minute chart time=frame.
  2. Trade signal to be executed immediately the trading rules are met
  3. Entry alert signals should be executed during the day time.

TIMELINE OF DAY TO TRADE MARKET - MARKET TRADING HOURS

Watch market during the day time when most companies & brokers are open for trades. Use this to come up with a good-enough program.

Example Trade Plan Template

Written System for Indices Plan Example Template

Tips - You can use the MT4 Software Platform to save this as a indices template that way you don't have to lay it afresh every time you open a new chart. If you want to know how to save a trading plan template on the MT4 platform software, read: MT4 Platform Guides Courses.

Stock Money Management

  • Intraday 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 40-60 Pips
  • Never transact beyond three percent of trading account equity
  • Never risk more than 2% on a single trade

Index MINDSET/PSYCHOLOGY

  • Trade without Trading Emotions (greediness, fear, impulse, bias, anticipation, overexcitement)
  • I trade what I see on the charts and not what I--feelI--am--feelingMy--feelings--are--telling--me.
  • I will be patient.

My job description isn't to be thetrade system!

It isn't to decide which signal looks promising & which does not.

That's the job of my trading system - that has got a set of rules that inform me this is what I follow. Don't get caught up in stock price action making rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently and wait for my trading strategy to show that it's time to enter or it is time to exit. And then with great and extreme focus I execute indices plan as is illustrated.

Taking trades not indicated by the trading strategy, second guessing it and not taking signals given, hesitating and getting in late, anticipating & getting into trade positions early are all common place and boil down to lack of faith in the plan & not having a burning resolve on accurate trade execution.

GOAL: To have 100 percentage undivided resolve on mastering the ability to execute my Index rules accurately.

More you develop your ability to step back from price movement & watch stock trading market calmly, waiting for a trade signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them and allowing them to throw you off your game.

WEAKNESS

  1. I am greedy.
  2. I over-trade
  3. Make a list of all your weak-nesses which are interfering with your trading. This is the first step to helping you to overcome the weak-nesses. Use Indices psychology to help you as a trader to overcome them.

NB: by writing down your weaknesses you will start recognizing them as you make progress, once you do this you'll start to avoid these trading mistakes & your results will improve.

GOALS

  • To focus on the exit just as much as I do on entry signals.
  • Always protect my trading account using stop loss order, money management techniques, follow with the trend direction & always following the trading rules of my strategy.
  • Never second-guess or go against my strategy. To always keep up my discipline.
  • Follow all the rules of my strategy & never break them.
  • Transact fewer times and execute all my signals correctly. Trade what I see, what the system + stock charts are telling me.
  • Sit patiently and wait for signals from my trade strategy.
  • Achieve consistent indices results before registering a real/live account.

FOLLOW THIS Indices SYSTEM

This is the most important part of creating the trade system.

Always follow the trading rules

Stick with the trade rules

Be disciplined and patient enough

Index JOURNAL

Log all my trades in a journal so that to track my training progress & improve my indices execution methods.

This strategy uses momentum to determine trend of any indices.

Even if you're new to market & you do not know how a trading system resembles, this system template example illustrates to you how a trading strategy should look like, the tutorials explained in other sections of this training website will also explain further the different aspects that you need to learn.

Hence, the objective is to help you as a trader as a trader create your own complete strategy that's if you're looking for one, by showing you one that is already complete. In fact you as a stock indices trader can just use it as it is, or make a couple of adjustments so that as it suits your style.

Aim is to help you as a trader improve your results by using a trading plan, & another advantage is that this trade plan will offer you a chance to improve your knowledge and it will help you improve your results and help you make pips when stock indices trading and keep them so that as you don't keep giving them back to the market.

Read this plan training lesson about creating a trading plan of your own, along with the learn tutorials & trade strategies listed at the top of this learning tutorial web-site.

The Advantageous part of using this trading plan template is the "Indices Money Management Part" you'll learn how to trade indices & minimize risk, which is the most important thing when it comes to the trading market.

Index Plan Checklist - How to Develop a Plan in Index - Indices Plan Examples - Indices Plan Doc

More Tutorials and Courses:

Forex Trading Seminar Gala

Forex Trading Seminar

Stock Index Broker