TIPS: MAXIMIZING PROFITS OF Index SYSTEMS

Tips for Systems for Beginners - How to Improve Your System When Trading Index Online

1. Define Simple Stock Index Rules & Follow the Trend

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

2. Eliminate Risk Quickly and Let Profits Run

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

3. Select the Right Stock Indices

Once you as a trader have your system, you'll want to begin testing it on a practice trade account. Index have their own characteristics different from others. A system will give different results for each Stock Index.

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

4. Use Index Money Management Rules

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

5. Keep a Index Journal

Keeping a log of all your positions will help you to become a better & better & will help you as a trader follow the trade rules of your system. A trading journal will also keep track of your trading profitable trade positions & losses & you as a Stock Index trader can analyze & interpret why a indices trade setup was profitable and why it was not.

6. Set take Profit Targets

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

Explanation of trading signals generated/derived by our trading system

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

Tips for Strategies for Beginner Traders

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