torsdag den 8. september 2011

Why do you need to develop your own trading system?

Why do you need to develop your own trading system?

There are many trading systems and strategies offered free articles printed in journals, books and on websites (like ours). Further, you can buy it as software or you can subscribe periodically.




Tradeurs novices say they do not have time, ability, talent or the brains to work on how to negotiate properly. They prefer to buy a program or to subscribe to a trading system for hundreds - or in some cases - thousands of dollars. They say they can do rine unless they are told what to buy, when to buy and how much you need to buy. Some ask me if this strategy or approach is recommended to trading on financial markets. To answer this question, then I am obliged to consider the advantages and disadvantages of using such an approach to negotiation.

There are reasons why a trader uses a system or strategy that someone else has already developed and tested:

1. Ease: A novice trader does not need to study how the market works and how it interacts with the market. He does not need to learn: it does not need to bother with books and seminars. He does not need to test the system, since the seller has already done for him.

2. Tradeur a novice hopes to get a trading system at a negotiable price: sometimes even free.

The dangers of using a system or strategy developed and tested by someone else are:

1. Defective Systems

There are many defective systems there. They may be defective because of their assumptions and mechanisms can not be true, accurate or valid. As tradeur beginner, how can you distinguish good system if you do not know how trading systems are built?

2. Discipline and trust

All systems of withdrawal periods. Some systems can not make good money for six months or a year. Although it was a good system, can you continue to follow him, even if it gives you a loss after loss after loss? How do you do if you do not trust enough? How can you be confident if you do not know the ins and outs of the system and if you have not tested yourself?

I do not think there are people who blindly follow a system even if they had been told he will bring them wealth. I can give someone a trading system, I can provide outstanding results and even hypothetical or real, it would not be able to follow him.
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To overcome the dangers above, I see no way except to learn how to develop your own trading method. It's the only way for traders to know if a system is bonn or not. Once a trader learns to develop systems and strategies, then it may be better equipped to test them too. At this point, it might even find it better to use the system he created, as it becomes more difficult to find another system more suited to its profitability objectives while operating within its level of risk tolerance. It is likely that once he develops this skill level, it simply acquire scaffold systems other than to dissect, take the parts he likes and add them to its own system. .

In conclusion, I would say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money to someone else to invest. Give it to someone who is a trading system that he developed and tested himself because he is more likely to have the confidence and courage to follow its own set of rules.

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