The greatest enemy of traders and investors is fear and greed. Without a proper exhibition of system trading you cannot overcome this two phenomenon of trading. The problem is that, we typically experience these emotions at the wrong times and end up buying when we should be selling and selling when we should be buying. That is why every trader need a trading system.
WHAT IS A TRADING SYSTEM?
A trading system is a set of predetermined systems that indicate when to buy and sell. The trader in this situation put certain factors in place to determine the market behaviour by using technical indicators and the underlying driving the market at that time. A proper study of fundamental and technical analysis become relevant in this regard. when this is put into consideration it put trader in a better position to trade without any form of panic.
what you stand to gain when you apply trading strategies trading the markets.
- Remove emotions from your trading; trading strategies remove emottion from the trader become so confidence trading devoid of fear because of the set rule guiding your decision, you eliminate fear totally from trading.
- Eliminate guess work; when you apply trading strategies you eliminate every form of guess work and follow your trading plan, by using the charts and technical indicators, you will get rid of guess work and follow your plan, to determine the right time of the market and get in.
- Back test your trading strategies; trading system will help you to back test your strategies so that if there is need to change you can do that without delay. The essence of back testing your strategies is to find out if the strategy you are using is profitable or not working properly. Back testing will help the trader detect this and take action accordingly.
- Improve your trades for success; one of the benefit of trading strategy is to improve your trading success, because the goal of every trader is to make money, and the odds must be in your favour. It makes you a more discipline trader and success is usually sure.
System trading works for both end of day trading and intra-day trading, it is the only sure way for your trading success. Traders are encourage to always have a trading system in place when trading and being able to stick to such strategies. this is your guarantee to your trading success trading the financial markets.
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