How to Write a Good Indices Plan

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

JUSTIFICATION

1. Stock Indices 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 will 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 trader on target, read the trade plan every day and stick to its rules.

In your 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 trading, you should read the trading plan every day until it is on your fingertips so that when you are 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've one. By having a one you have an advantage over the trading market, you'll have better chances of making a profit than those who do not have one.

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

Indices plan is one of the secrets which can help you to improve your profits. A good indices training guide like this one should show you how to come up with one using a 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 profitable? one of the methods 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 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

Moving Average - Identify a new trend as early as possible.

MACD - Identify a trend as early as possible.

Determine momentum of a continuing trend.

RSI - Swing failure to confirm the start 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 market trend.

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

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

Bollinger Bands - for price action study

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

TRADING CHART TIMEFRAMES

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

15 Minute Charts

• Trendlines (Support & Resistance)
• 5 and 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 Centerline (Not MACD moving UP)
3. RSI >-> 50
4. Parabolic SAR 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 positions.

LONG EXIT

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

RULES

SHORT ENTRY

Entry

15 Minute Charts

1. Both Moving Averages 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 a opposite signal
2. Price action breaks Support Trend-Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

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

TIME OF DAY TO WATCH THE MARKET - MARKET TRADING HOURS

Watch market during daytime when most companies & brokers are open for trade transactions. Use this to come up with a good-enough program.

Example Trading Plan Template

Tips - You can use the MetaTrader 4 Platform to save this as a indices trading 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, read: MT4 Platform Guides.

Stock 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 Pips
• Never transact beyond 3 % of trading account equity
• Never risk more than 2% on a single trade

Indices MINDSET/PSYCHOLOGY

• Trade without Trading Emotions (greed, fear, impulse, bias, anticipation, 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 is not to decide which signal looks promising.

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

Taking trades not indicated by the trading strategy, second guessing it and not taking signals given, hesitating and 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 % 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 calmly, 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, 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 guidelines 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 strategy.
• Achieve consistent indices results before registering a real account.

FOLLOW THIS Indices SYSTEM

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

Always follow the trading rules

Stick with the trading rules

Be disciplined & patient enough

Indices JOURNAL

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

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

Even if you're new to market & you do not know how a trading system looks like, this trading system template example illustrates to you how a 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 create your own complete 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 style.

Aim is to help you 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 you don't keep giving them back to the trading market.

Read this trading plan training lesson about developing a trading plan of your own, along with the learn trading 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 will learn how to trade indices & minimize risk, which is the most important thing when it comes to trading the trading market.

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