TIPS: MAXIMIZING PROFITS OF Indices SYSTEMS

1. Define Simple Rules & Follow the Market Trend

The simpler the system is the better. If the trading system is too complex, it will be very difficult to stick to the rules. Complicated trading systems are also very confusing. A simple system makes it easy to follow the rules.

2. Eliminate Risk Quickly & Let Profits Run

Minimizing risk is far more important than making money. Our first main objective in indices trading is to make the trade transaction less risky. We achieve this by only entering the high probability trading setups, setting stop losses, cutting losses quick & never average down, and letting the profitable trade positions run for a while, just long enough, but not very long, in order to increase profits. Profitable trades and positions are only kept open as long as the system shows the trend is in place, these transactions/positions should be closed immediately as soon as your exit trading signal criteria is generated by the system.

3. Choose the Right Stock Index instruments

Once you have your trading system, you'll want to begin testing it on a demo trade account. A trading system will give different results for each indices.

To maximize the profitability of your trading system find the most active market times for a selected indices instrument and trade during that session only.

4. Use Money Management Guidelines

Always risk less than 2% per position. With compounding, you will be surprised to see how quickly your account grows once you begin to trade with a profitable trading system.

5. Keep a Trade Journal

Keeping a log of all your stock trades will help you as a trader to become a better and better and will help you follow the rules of your trading system. A trading journal will also keep track of your trading profitable trade positions & losses and you as a trader can analyze why a trade setup was profitable & why it wasn't.

6. Set take Profit Targets

Establish a daily, weekly or monthly trading profit targets when trading the market. Once you as a trader hit this target, stop trading & take a break. This will stop you from overtrading and will also stop you from giving back your trading profit to the market. Keep your risk : reward ratio high, a 3:1 risk to reward ratio is best. This means opening trade positions only when you have got the probability of making three times what you are risking.

Examples of signals generated/derived by our trade system

Example 1: Buy Trading Signal & Sell Trading Signal Generated By Stock Indices System

Buy signal is generated by the indicator based system - Trade System Tips

Buy trade signal is generated by the indicator based trading system, then an exit trading signal is derived & generated before another reverse sell trade signal is generated on this chart

Example 2: Two buy trade signals generated/derived by System

Two buy signals are derived & generated during the upwards trending market - Indices System Tips

Two buy signals are derived and generated during the upwards trending market

Example 3: Exit Signal Derived/Generated by System

Explanation Examples of Trade Signals Derived/Generated by a Trading Strategy - Trading System Tips

Example of Signals Derived/Generated by a System

Other Tips

Learn Education Guide

The first tip is to learn about the Trading Market (Learn Lessons), those who don't learn the required trading knowledge from the various tutorials online will not improve their results no matter how many tips they have read. By not studying trading, these traders will keep making the obvious mistakes made by indices novice traders without even realizing what they are doing, Stock Indices is a wide topic and in order to make profits a trader will be required to learn trading first.

Get a System

A stock trading system is a must for every trader, a trading system is used to identify what indices trading decision to take. A trading system gives a trader an edge over others who don't have a plan. A good indices plan is one that is back-tested and proven to produce profitable stock trades. After coming up with your trading system you should back-test it on a Practice Demo Trade Account.

Learn Money Management

Learn about The Various Indices Money Management Tutorials, don't attempt to trade the online market if you do not have equity money management guide-lines. The 2 indices management guides that you as a trader must learn are:

What is Trading Capital Management

Indices Equity Management Methods

Learn about Leverage & Margin

If you don't know what's leverage & how it works & how it can affect your margin, then you'll not make any money in the market & you'll lose your money in the market.

Have a Written Plan

A indices plan will take into account all the above tips and summarize them within one document that you as a trader can use to trade the online trading market.

In General

The first goal should be taking your time to really determine what your goals are & how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to begin Trading. It is essential to keep all the three goals in mind when executing all of your trades but at same time this is not a black and white lesson to trading success.

The first thing is to remember that you really need to work with short term stock trades until you become profitable and know how to properly monitor these trades. You should trade short term because this way you as a trader can monitor your open trades and quickly close any indices position whose signal setup reverses. In order to truly benefit from the system you have to be willing to take up the effort to watch the market to see exactly how long you as a trader can keep your money invested in the online stock market. Making short-term trading investments will help you to monitor your stock trades and control all the risks, do not leave orders open when you're away from your Desktop computer PC or when you are going to sleep, close all trades and only open orders when you as a trader can keep track of them.

Although it is very important to increase the amount of stock trade positions that you are investing each time that you trade - some trading guidelines should to be followed. The general rule of money management guidelines will tend to be never to trade more than 2 % of your total trading equity. This of course makes sense when you have a lot of money on your account but what if you only have a few hundreds. Two % of $10,000 equals out to be $200 dollars. Even though it's safer to follow this rule it really does not make a lot of sense with smaller trading accounts. If you are investing on Indices this is when trading leverage kicks in to effect and makes all of the difference. In General the more indices capital you have to invest the better in terms of money management.

The final suggestion is taking a bit of time to ensure that you get all of your trading details & particulars correct before opening any one trade, this will be the best method. Keep it simple makes just as much sense in the market than anywhere else. Although this might require more time and effort to build up your trading profits it'll save you money in the long term.

Trying to maintain your thinking as clear as possible will make your learning trading journey more easier but knowing when to breakaway from the norm is also crucial. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps & logic you will be able to continue to make profits. Indices is not hard to learn but a lot of traders lose money quickly due to not taking the proper steps in preparation and learning.

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