TIPS: MAXIMIZING PROFITS OF Stock Index SYSTEMS
Tips for Indices Trading Systems for Beginner Traders - How to Improve Your Indices Trading System When Trading Stock Index Online
1. Define Simple Stock Indices Trading Rules and Follow the Trend
The simpler the Stock Indices trading system is the better. If the Stock Index trading system is too complicated, it will be very difficult to stick to the Stock Indices trading rules. Complicated Stock Indices systems are also very confusing. A simple Stock Indices system makes it easy to follow the trading rules.
2. Eliminate Risk Quickly & Let Profits Run
Minimizing risk is far more important than making money. Our first objective in Stock Indices trading is to make the trade less risky. We do this by entering only high probability trade setups, setting stop losses, cutting losses quick & never average down, & letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable Stock Indices trades are only kept open as long as the Stock Indices trading system shows the Stock Indices trend is in place, these trade transactions should be closed immediately once your exit signal criteria is generated by the Stock Indices trading system.
3. Choose the Right Stock Indices
Once you have your trading system, you will want to begin testing it on a demo Indices trading account. Stock Index have their own characteristics different from others. A Stock Index trading system will give different results for each Stock Indices.
- EURO STOXX 50 Index
- DAX 30 Stock Index
- Dow Jones Industrial Average 30 Index
- FTSE 100 Index
- Nikkei 225 Stock Index
- S&P ASX 200 Index
- FTSE MIB 40 Stock Index
- S & P 500 Index
- NASDAQ 100 Stock Index
- CAC 40 Index
- SMI 20 Stock Index
- AEX 25 INDEX
- Hang Seng 50 Index
- IBEX 35 Stock Index
To maximize the profitability of your trading system find the most active Stock Indices market hours for a chosen stock index & trade during that market session only.
4. Use Stock Indices Money Management Rules
Always risk less than 2% per Indices trade transaction. With compounding, you will be surprised to see how quickly your Indices account grows once you begin to trade with a profitable Stock Indices trading system.
5. Keep a Stock Indices Trading Journal
Keeping a log of all your Indices trades will help you to become a better & better & will help you follow the trading rules of your trading system. A Stock Index trading journal will also keep track of your profitable Stock Indices trades and losses and you can analyze why a stock trade setup was profitable and why it was not.
6. Set take Profit Targets
Establish a daily, weekly or monthly profit targets when trading the Stock Indices market. Once you hit this target. This will stop you from over-trading & will also stop you giving back your profits the Stock Indices market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening Stock Index trade transactions only when you have the probability of making three times what you are risking.
Example of signals generated by our Stock Index trading system
Example 1: Buy Signal and Sell Signal Generated By Stock Index Trading System
Buy signal is generated by the indicator based Stock Indices trading system, then an exit signal is generated before another reverse sell signal is generated on this Stock Indices trading chart
Example 2: Two buy signals generated by Stock Index Trading System
Two buy Stock Index trading signals are generated during the upward Stock Indices trending market
Example 3: Exit Signal Generated by Stock Index Trading System
Examples of Stock Index Trade Signals Generated by a Stock Indices Trading System
