How to Write a Good Indices Trading Plan

trading plan checklist - the following is a template examples of a indices trading plan template example:

JUSTIFICATION

1. Stock Indices Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• 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 KEEP ME IN THE RIGHT DIRECTION when Trading Indices

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

Keep you on target, read the trade plan every day and stick to its rules.

When it comes to your trading plan you should think of it as a map that shows 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 cover all aspects of indices trading, you should read the indices trading plan every day until it is on your fingertips so that when you are transacting on the fast moving market of indices trading you'll always know what to do in every situation.

Your indices trading plan can be as simple or as complicated as you like, but most important thing is that you've one. By having a one you have an advantage over the trading market, you will have better chances of making a profit than those who do not have one.

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

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

One of the most commonly asked question is, Is Indices profitable? one of the methods to make it profitable is to have a good plan.

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

GOALS OF THE TRADING SYSTEM

1. Ability to IDENTIFY TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The trade system should find a compromise between the 2 Goals,

Find a way to identify a trend as early as possible but also find ways to help you distinguish fake signals from the real ones.

FUNCTIONS OF EACH INDICATOR

MA - Identify a new trend as early as possible.

MACD - Identify a trend as early as possible.

Determine strength of a continuing trend.

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

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

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

Trend Lines - Signals a reversal when the line is broken

Price Action Signals - confirm the weakening of a trend.

Bollinger Band - for price action study

To learn & know more about each indicator & how these technical indicators can be used to generate trading signal setups you can go to Indicators Section

TRADING CHART TIME FRAMES

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

15 Minute Charts

• Trendlines (Support & Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minute Charts

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

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

LONG EXIT

1. RSI gives opposite signal
2. Price breaks Support Indices Trendline
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minute Charts

1. Both MAs are moving DOWN
2. MACD Below Zero Center Line (Not MACD moving Down)
3. RSI <-< 50
4. Parabolic SAR 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 opposite signal
2. Price action breaks Support Indices Trendline
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

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

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies & online brokers are open for trades. Use this to create a suitable program.

Example Trading Plan Template

Tips - You can use the MetaTrader 4 Trading Platform to save this as a indices trading template that way you do not have to lay it afresh every time you open a new chart. If you want to learn how to save a indices trading plan template on the MT4 platform, read: MT4 Trading Platform Guides.

Stock Indices Money Management

• 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 40-60 Indices Trading Pips
• Never transact beyond 3 % of account equity
• Never risk more than 2% on a single trade transaction

Indices MINDSET/PSYCHOLOGY

• Trade without Trading Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
• I trade what I see not what I feel.
• I will be patient.

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

It isn't to decide which signal looks promising.

That is the job of my indices system - that has a set of indices rules that tells 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 & wait for my trading strategy to show that it's time to enter or it is time to exit. And then with great focus I execute indices trading plan as outlined.

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

GOAL: To have 100 Percent undivided desire on mastering my ability to execute my Indices rules accurately.

More you develop your ability to step back from price movement and watch stock 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.

WEAKNESS

1. I am greedy.
2. I over-trade
3. Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you to overcome these weaknesses. Use Indices psychology to help you 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 exit just as much as I do on entry signals.
• Always protect my account using stop loss, indices money management techniques, follow with the trend direction & always following the trading rules of my trading strategy.
• Never second guess or go against my trading strategy. To always keep up my discipline.
• Follow all the guidelines of my indices strategy & never break them.
• Transact fewer times & 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 strategy.
• Achieve consistent indices trading results before opening a live trading account.

FOLLOW THIS Indices SYSTEM

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

Always follow the trading rules

Stick with the trading rules

Be disciplined & patient enough

Indices Trading JOURNAL

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

This trading strategy uses momentum to determine trend of any indices.

Even if you're new to market & you don't know how a trading system looks like, this trading system template example illustrates to you how a indices strategy should look like, the Indices 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 create your own complete trading strategy that is if you are looking for one, by showing you one that's already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your indices trading style.

Aim is to help you improve your indices trading results by using a indices 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 indices trading results and help you make pips when stock indices trading and keep them so that you do not keep giving them back to the trading market.

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

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 & minimize risk, which is the most important thing when it comes to trading the trading market.

Indices Trading Plan Checklist - How to Develop a Trading Plan in Stock Indices - Indices Trading Plan Examples - Indices Trading Plan Doc