Create A Trading System
This is the third issue in my “Get Started Trading” series. | A trading system is a set of rules you follow that help you see buy and sell signals in the market based upon technical indicators. My Trading System allows me to trade in a way that fits my chosen lifestyle and trading goals...
This is the third issue in my “Get Started Trading” series.
Trading Is Not Like Gambling
A lot of people think trading is like gambling.
While there are similarities, here’s how trading is different from gambling:
- In gambling The House always wins. Which means if you gamble consistently you may win once in a while, but over time you will lose more than you win. Skilled or professional gamblers are not allowed in casinos.
- In the Markets skilled Traders make money. Trading is a skill. Which means if you learn the skills, and trade using a system, over time you will have some losses, but you will make more money than you lose. There are thousands of skilled traders – ever heard of Warren Buffet?
What Is A Trading System
A trading system is a set of rules you follow that help you see buy and sell signals in the market based upon technical indicators and analysis of stock movements over time. The big benefit of using trading system signals is the removal of emotion from your trading decisions.
The keys are learning to identify buy and sell signals in the market and having a system for doing that. I developed My Trading System to be simple, to grow my savings by at least 10% each month, and to generally require less than 1 hour of my time each day. Click here to read about My Trading System.
Benefits Of A Trading System
My Trading System allows me to trade in a way that fits my chosen lifestyle and trading goals. My Trading System makes trading “easy” for me. It gives me a specific way of trading that gets me consistent results when I stick to it. My Trading System gives me a trading foundation I can build upon.
My Trading System does not limit me. There are times when I trade outside the system to test new things that I learn. When some of those new things I try work consistently, I may add them into My Trading System.
I believe having a trading system is one of the most important parts of being a successful trader. Learn, be patient, and develop Your Trading System.
Happy Trading!
