INDICES TRADING PLAN - EXAMPLE OF TRADING PLAN TEMPLATE

Below is an example of a plan that a stock index trader can use as a template to come up with one of their own.

JUSTIFICATION FOR PLAN

1. TRADING IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE A PLAN

Businesses which are successful always begin with a plan.
Successful business plan will lesson you to success, think of your trade plan as a map - it's a constant reminder of how you'll consistently pull trading profits from the Index market .
Difference between a successful Indices trader and a losing trader is the plan.

2. TO KEEP ME IN THE RIGHT DIRECTION

Consistency is important in your routine to measure how successful you're as a trader.

Keep you on target, read it every day & stick to it.

IF YOU HAVE A GOOD TRADING PLAN AND YOU ARE DISCPLINED ENOUGH TO STICK TO IT YOU WILL BE SUCCESSFUL.

INDICES STRATEGY

Our strategy will only open bullish trades, this is because Indices moves are based on the principle that prices always move up over time, therefore the Stock Index that track these prices movement will over time move in a general upward direction. To open a buy trade we shall wait out for a price pull back and buy these dips.

TREND DIRECTION

BULLISH BUY TRADES ONLY

WAIT FOR PULLBACKS - BUY THE DIPS

TRADING SYSTEM

GOALS OF THE SYSTEM

Ability to IDENTIFY A TREND AS EARLIEST AS POSSIBLE.
Ability to AVOID WHIPSAWS.

A Trade System should find a reasonable middle ground between the 2 Goals,

Find a way to spot a trend as early as possible but also find ways to help you as a trader distinguish the fake signals from the real ones.

THE FUNCTIONS OF EACH INDICATOR

MA - Identify a new trend as early as possible.

RSI - Confirm the start & begin of a new trend.

TIMEFRAMES

Main time-frame is the 1H.
Signals are generated on the 1 Hour timeframe.

5 & 7 L MA
RSI (14)

RULES

LONG ENTRY

1H Chart

Both Moving Averages are moving UP
RSI greater and higher than 50

LONG EXIT

Moving Average gives and generates in the opposite market trend signal

TRADE ROUTINE

Signals are generated using 1 Hour timeframe.
Trading Signals to be executed immediately the trading rules are met ( Not Before ).
Entry signals should be executed during day-time.
Close all trade positions at the end of the trading day.

TIME OF DAY TO WATCH MARKET

Watch market during day-time

Trading Plan Stock Indices One Page Stock Index Plan - How Do You Make a Plan?

MONEY MANAGEMENT

Day trading - Low risk High return trading method

Trade when I have a high risk : reward ratio 3:1 or more

Never trade more than 10 percentage of account total account balance

Never risk more than two percent on a single trade

MINDSET and PSYCHOLOGY

Trade without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
I trade what my eyes see & not what I feel.
I'll be patient.

My job is not to be the system!

It isn't to decide which trade positions looks promising.

That is the job of my FX system. My system has a set of rules which tell me this is what I follow. Do not get caught up in the price action and make rules & strategies as you go along.

MY JOB DESCRIPTION IS

To sit patiently and wait for my system to show that it is time to enter or it is time to exit. And then with maximum focus & concentration I execute trade position as planned.

Taking trade transactions not indicated by the system, second-guessing the system and not taking trade positions given, hesitating & getting in late, anticipating and getting in early are all common-place and boil down to lack of faith in the system and not having a burning focus on accurate execution.

GOAL: To have 100% undivided resolve on mastering ability to execute my Index system accurately.

The more you as a trader develop your ability to step back from market movements & watch and monitor the market calmly, waiting for a trade signal to trade, easier it will be to witness the fluctuations/oscillations of your emotions without getting sucked into them allowing them to throw you off your game.

WEAKNESS

I am greedy.
I overtrade
Make a listing of all your weaknesses which are interfering with your trading. This is the first strategy toward helping you as a trader overcome these weak-nesses. Use trading psychology to help you as a trader overcome them.

Note: by writing down your weaknesses you'll start recognizing them as you trade, once you do this you will begin to avoid this mistakes and your trading will improve.

GOALS

To focus on exit just as much as I do on entry.
Always protect my account using stop loss, equity management methods, trading with the trend and always following the trade rules of my system & plan.
Never second guess or go against my system. To always keep up my trading discipline.
Follow all the rules of my system and never break them.
Trade fewer times & execute all my trades rightly. Trade what I see, what the strategy + charts are telling me.
Sit patiently and wait for signals from my system.
Achieve consistent profitable trading results.

Write down goals & focus on achieving these goals on your trading

FOLLOW THE TRADING SYSTEM RULES

This is the most crucial and important part of creating the system.

Always follow the trade rules

Stick with the trade rules

Be disciplined & patient enough

JOURNAL

Log all my trade positions in a journal so as to track my progress.

More Guides & Topics:

Trade Forex Trading