The Importance of Creating a Trading System!
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    Registered user techboy's Avatar
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    The Importance of Creating a Trading System!

    Hi fellow traders, today I just want to give emphasis on how important a trading system is for us to succeed in trading, I notice also that some strategies presented here are just based on a particular indicator, for me nothing is wrong in using a particular indicator but it is not enough, indicators are lagging in nature and its reacting based on past data so more often we have false signals. What we really mean when we say a trading system? my simple understanding about it, is an strategy used by an individual trader that uses set of indicators or patterns to timed his entry to the market but with defined risk level, defined stop loss and target profit, defined time to enter, defined time to exit,in short it must be a complete trading strategy. A trader must not trade just because an indicator tell him to enter a trade, we must consider first a lot of factors before clicking the buy or sell button, for example what time of day the signal occur, is it in the Asian or US sessions? obviously a signal in the Asian session may yield different result if it occur in the US session, or are there fundamental news scheduled for release in the next hour or less?In conclusion traders must develop the skill of filtering his trading signal by applying set of parameters before considering to click that sell/buy button for him to have a high probability of winning. Any ideas to add on these topic will be highly appreciated.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Registered user lawners1791's Avatar
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    trader works on creating of the customs with the use on strategy on running of the jobs with the good supports of the choice of system to helps with the analytics.
    and more to prepare of the best on distributing of the good resource by the chance on exchanging of the good options with the arbitraging market of the fx commodity.

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    Registered user techboy's Avatar
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    Other factors to consider before opening a trade are: support and resistance, if the price is close to such level you may not consider placing a trade even if your trading system tells you.The other one is monitoring daily trading range of a particular currency pair, these is important because most of the time if price reach its daily range for the day it may not move further or even retrace, so entering a trade at this point may not yield good results anymore, traders must consider only for setup with high probability of winning.

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    Trading system means how trader trading way. Most of the trader make their trading system by using various indicators. Trading is easy for everyone but profitable trading is not easy. To make profit from forex market we need systematic trading way, and we can call it trading system. Other way we can call it trading plan.

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    Registered user techboy's Avatar
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    Quote Originally Posted by Bishwajit88 View Post
    Trading system means how trader trading way. Most of the trader make their trading system by using various indicators. Trading is easy for everyone but profitable trading is not easy. To make profit from forex market we need systematic trading way, and we can call it trading system. Other way we can call it trading plan.
    Its contradicting to say that trading is easy but hard to be profitable, maybe the right phrase is that it is easy to join in trading but its hard to be profitable, we have to understand that trading is a very tough profession, it only look easy because its available online but becoming a professional trader requires a very good understanding of the market and may take time to achieve it.

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    yes as entering with the customs on profile as trader to manages of the deeper on attention as distributing of the good risks and the resources with the main on goals as to complete of the number with the target to closed with the given periode of terms with the trading plan.
    that those to distinguished of ones with more of available options as works to gives of the best to match of the traders profile.

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    Rookie rinaji's Avatar
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    Basically, trader must understand the market conditions and the use of our strategy at the right moment in accordance with market conditions, I agree completely with you. The main problem is that we should be able to find a good moment for our strategy, rangingstrategy was placed on the ranging market, break out strategy was placed on the market trends, we can not successfully use ranging strategies in all market conditions, for example, we can use 20 and 80 stochastic value as overbought/sold in ranging markets, but we have to change our methods on market trends, so we use 20 and 80 stochastic as break out point.

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    Quote Originally Posted by techboy View Post
    Other factors to consider before opening a trade are: support and resistance, if the price is close to such level you may not consider placing a trade even if your trading system tells you.
    Yes I agree with you. By knowing the levels of support and resistance before we enter the market, we can know the limits that will be addressed by the price and whether the price will be able to continue the trend or experience an obstacle that may cause a reversal of the trend.

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    Quote Originally Posted by rinaji View Post
    Basically, trader must understand the market conditions and the use of our strategy at the right moment in accordance with market conditions, I agree completely with you. The main problem is that we should be able to find a good moment for our strategy, rangingstrategy was placed on the ranging market, break out strategy was placed on the market trends, we can not successfully use ranging strategies in all market conditions, for example, we can use 20 and 80 stochastic value as overbought/sold in ranging markets, but we have to change our methods on market trends, so we use 20 and 80 stochastic as break out point.
    I agree, using the right strategy and indicators is essential to be more profitable in trading, there are indicators that only performs well in specific market conditions, so we need to know what are these indicators and tweak it to our preference so that we can get the desired results. Combined with other filters that mentioned above we will definitely perform better in our trading.

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    Quote Originally Posted by rinaji View Post
    Basically, trader must understand the market conditions and the use of our strategy at the right moment in accordance with market conditions, I agree completely with you. The main problem is that we should be able to find a good moment for our strategy, rangingstrategy was placed on the ranging market, break out strategy was placed on the market trends, we can not successfully use ranging strategies in all market conditions, for example, we can use 20 and 80 stochastic value as overbought/sold in ranging markets, but we have to change our methods on market trends, so we use 20 and 80 stochastic as break out point.
    According to me its very important to know the market condition because if we don't have any sense of the market then there no analysis will work for us, we always try to make money very fast and try to just enter in the market in wrong time, we have to keep patience of the best and bigger reward every time here

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