Importance Of A Great Trading System

Importance Of A Great Trading System

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The benefit of a great trading system can not be underestimated. A trading system will be your saving grace when it comes to capital protection. And capital protection is the key to a long trading career.

So what type of trading system do you need? Unfortunately this is where I say the old adage, “you have to find a system that suits you”. Annoying as it is it is true.

Personally, I could not trade a longer term system that requires holding positions for swings of a few days. This is because the ratio of holding time to points gained is not a direct correlation. Thus holding a position for several days does not mean you are going to get a lot more points than if you traded several times with in the swing.

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Day trading, however, isn’t for everyone and it does require some careful thought and planning. A good day trading system will be key though. You will need to know how many trades you will be taking, the potential loss of the system and have a systematic plan to entering and exiting a system.

There are plenty of traders who say they do not use a trading system. However, when you look at their trading style more closely you actually see they are trading in a systematic and ultimately mechanical way. They often have clear entry and exits and clear target and stops.

As of yet I have not found a excellent trader who has been around a while who does not use some form of trading system. Those that you see who don’t seem to use on are, as I mentioned before, using one but don’t realise it or they are actually not as successful as they make out on the internet and the various trading forums they visit,

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So when you are wondering why you are not doing as well in your trading as you would like it might be worth considering taking a more systematic approach and design your own trading system.

Looking to find the best trading systems? Then visit to find all you need to know to create your own trading system .

categories: forex,trading,trading systems,day trading,futures,financial markets,finance,stock market,investments

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