Counter Trend

One must create a stock indices strategy which they stick to when trading the online stock indices market. One must have the discipline to s broken then the sentiment of the stock indices strategy at all times. That is why it is better to come up with strategies which are profitable - profitable stock indices systems will be a lot easier to follow & stick to. This is because a trader knows that by following the rules of their stock indices system they will be successful.

A carefully designed strategy which has been back tested & proven to produce profitable results is one of the keys to becoming successful when trading the stock indices market. This type of strategy will make it easier for the trader to follow the rules of their stock indices strategy because they already know that the strategy is profitable, therefore maintaining the discipline to continue following the stock indices system will be much easier.

Successful stock indices strategies will also include:

1. Stock Indices money management guidelines

2.Stock Indices Psychology Mindset

The 2 will greatly improve the success of any stock index system.

However, Let us look at stock index price action strategy before explaining more about stock indices money management and stock indices psychology.

Counter Stock Indices Trend Strategies

Counter stock indices trend strategies are best used to place trades on major resistance and support areas where stock index price is likely to reverse. These are the support and resistance levels where stock index price has not broken before.

However, this strategy isn't the most reliable stock indices method because trying to catch the stock indices market top or the stock indices market bottom is not the best strategy as the stock indices trend may continue to move in the original direction of the trend for quite some time.

This strategy should therefore only be used to trade stock indices trading that rarely stock index trend. Traders can draw support and resistance levels of the stock index price range and they will then use these levels to open trades - traders will open buy stock index trades at the support level and traders will open sell stock index trades at the resistance level. For a range bound market the stock index prices will keep bouncing off these points and the traders will open trades and keep trading these stock index price bounces.

Stock Indices Strategies Tips

Once a trader has come up with their stock indices strategy, they should also include the following so as to make their stock indices strategy more successful.

1.Stock Index Money Management Rules

2.Stock Indices Psychology

Money Management Rules

Stock indices money management guidelines should be part of your stock indices strategy - the rules will help you as the trader to manage risk. This means that you will use the two rules of stock indices money management - these are risk : reward ratio & drawdown reducing strategy when placing your stock index trades to determine the lot size that you'll open in the stock indices market. The most popular stock indices money management rule use in stock indices & the one that you should also add to your trading plan is the rule that says a trader should never risk more than 2% of account balance on any one single stock index trade.

To learn more about these 2 stock indices money management guidelines, traders should read the stock indices money management tutorial that is on the learn stock indices lessons section of this web site under the stock indices key concepts lessons.

Stock Indices Psychology Mindset

In order to become successful when trading the stock indices market a trader has to learn about stock indices psychology. The stock indices psychology or mindset that is required to become successful in stock indices is one that avoids the emotions of fear and greed while trading the stock indices market & is a mindset of total discipline that a trader will follow all their rules & their stock indices strategy & only trade with signals which are generated by their stock indices strategy. With discipline a trader will not trade unless their stock indices strategy gives a signal. One will have the mindset of only following their stock indices system 100% all the time without second guessing the stock indices system. A disciplined trader will also not place trades in stock indices market just because the stock indices market has started to move up or down-ward, instead a trader will wait for a trading signal to trade to be generated by their stock index strategy.

In order to study more about stock indices psychology & how to manage emotions while trading the online stock indices market a trader can read the stock indices psychology tutorials from the learn stock indices lessons section of this web site under the stock indices key concepts tutorials.