TIPS: MAXIMIZING PROFITS OF Indices SYSTEMS

Tips for Trade Systems for Beginner Traders - How to Improve Your Trade System When Trading Online

1. Define Simple Stock Indices Rules & Follow the Trend

The simpler the system is the better. If the trading system is too complicated, it'll be very difficult to stick to the rules. Complicated Stock systems are also very confusing. A simple system 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 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 and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable Stock trades are only kept open as long as the system shows the trend is in place, these trade transactions should be closed immediately once your exit signal criteria is generated by the system.

3. Choose the Right Stock Indices

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

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

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

4. Use Stock Money Management Rules

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

5. Keep a Journal

Keeping a log of all your Stock trades will help you to become a better & better & will help you follow the rules of your system. A journal will also keep track of your profitable Stock trades & losses & you can analyze why a trade setup was profitable & why it was not.

6. Set take Profit Targets

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

Example of signals generated by our trading system

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

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

Example 2: Two buy signals generated by Trade System

Two buy signals are generated during the upwards trending market

Example 3: Exit Signal Generated by Trade System

Examples of Stock Trade Signals Generated by a Trade System