Learn Trend Reversal Strategies
A trader must create a trading strategy which they stick to when trading the online stock market. A trader must have the discipline to s broken then the trading sentiment of the strategy at all times. That's why it's best to come up with trade strategies that are profitable - profitable trading systems will be a lot easier to follow and stick to. This is because one knows that by following the rules of their system they will be successful.
A carefully designed strategy which has been back-tested & proven to produce profitable trading results is one of the keys to becoming successful when trading the trading market. This type of strategy will make it easier for trader to follow the rules of their strategy because they already know that the trading strategy is profitable, therefore keeping up the discipline to continue following the trading strategy will be much easier.
Successful indices trade strategies will also include:
1. Indices trading equity management guide-lines
2.Indices Psychology Mindset
These two will greatly improve the success of any trading system.
However, Let us look at price action method before narrating on money management & indices trading psychology.
Counter Trend Strategies
Counter trend strategies are best used to place trades on major resistance and support areas where price is likely to reverse. These are the support & resistance levels where price has not broken before.
However, this strategy isn't the most reliable indices trading method because trying to catch the trading market top or the trading market bottom is not the best strategy as the trend may continue to move in the original direction of the trend for quite some time.
This strategy should therefore only be used to trade that rarely trend. Traders can draw support and resistance levels of the price range and they will then use these levels to open trades - traders will open buy stock trades at the support level and traders will open sell stock trades at the resistance level. For a range bound market the prices will keep bouncing off these points & the traders will open trades and keep trading these price bounces.
Strategies Tips
Once one has come up with their trading strategy, they should also include the following so that to make their trading strategy more successful.
1.Indices Money Management Rules Course.
2.Indices Psychology
Indices Money Management Guide-lines
Indices trading money management guidelines should be part of your strategy - the trading rules will help you as a trader to manage risk. This means that you will use two rules of trading money management - these are risk : reward ratio & draw down reducing method when placing your stock trades to determine lot size that you will open in the trading market. The most popular indices trading equity management rule use in stock indices trading & the one that you should also add to your trading plan is rule which says a trader should never risk more than 2 % of their trading account balance on any one single trade.
To learn and know more about these 2 indices trading money management guidelines, traders should read the trading money management guide that's on the learn lessons section of this website under the trading key concepts lessons.
Stock Indices Psychology Mindset
In order for one to become successful when trading the trading market one has to learn about indices trading psychology. The psychology or mindset that is required to become successful in indices trading is one that avoids the emotions of fear and greed while trading the market & is a mindset of total discipline that one will follow all their rules & their strategy & only trade with signals that are generated by their trading strategy. With discipline one will not trade unless their strategy gives a trading signal. A trader will have the mindset of only following their system 100 % all the time without second guessing the system. A disciplined trader will also not open trade transactions in stock trading market just because the trading market has started to move up-wards or downwards, instead a trader will wait for a trading signal to trade to be generated by their trading strategy.
In order to know more about psychology & how to manage emotions while trading the online market a trader can read the trading psychology tutorials from the learn lessons section of this website under the trading key concepts courses.
