Trading strategies for beginners step by step

Tips for Trade Strategies for Beginner Traders - Tips for Stock Index Traders Strategies When Trading Online

1. Define Simple Indices Rules For Your Trade Strategy & Follow the Market Trend

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

2. Eliminate Risk Quickly and Let Profits Run

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

3. Choose the Right Indices

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

1. EUROSTOXX 50 Index
2. DAX30 Stock Index
3. Dow Jones Industry Average 30 Stock Index
4. FTSE100 Index
5. Nikkei225 Stock Index
6. S&P ASX200 Stock Index
7. FTSEMIB40 Index
8. S & P 500 Index
9. NASDAQ 100 Stock Index
10. CAC40 Index
11. SMI20 Stock Index
12. AEX25 Stock Index
13. HangSeng50 Stock Index
14. IBEX35 Index

To maximize the profitability of your trade strategy find the most active Indices market hours for a chosen Stock Indices and trade during that market session only.

4. Use Equity Management Rules

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

5. Keep a Journal

Keeping a log of all your trades will help you to become a better & better & will help you follow the rules of your Stock Index Strategy. A trading journal will also keep track of your profitable Indices trades & losses & you can analyze why a 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 Indexes. Once you hit this target. This will stop you from over-trading & will also stop you giving back your profits the market. Keep your risk to reward ratio high, a 3:1 risk to reward ratio is best. This means opening index trade transactions only when you have the probability of making three times what you're risking.

Example of signals generated by our Indices Strategy

Example 1: Buy Signal and Sell Signal Generated By Stock Indices Strategy

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

Example 2: Two buy signals generated by Stock Indices Strategy

Two buy Index signals are generated during the upward trending market

Example 3: Exit Signal Generated by Stock Indices Strategy

Example of Trade Signals Generated by a Trade Strategy