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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.

    "What we sow today is what we reap tomorrow"

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

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    [lang=id]need a time for trader to create a trading system or their owns, because they need to know the ability and what is the best thing for them , but if they can make it, they will know how to develop the skill and maximize it,
    of course, it is very important to create a trading system then we do not need to follow and depend to the others,[/lang]

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    Registered user techboy's Avatar
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    Quote Originally Posted by samprazaan View Post
    [lang=id]need a time for trader to create a trading system or their owns, because they need to know the ability and what is the best thing for them , but if they can make it, they will know how to develop the skill and maximize it,
    of course, it is very important to create a trading system then we do not need to follow and depend to the others,[/lang]
    I agree that creating a trading system may take time and good understanding of the market, to know how to trade manually using a good system has an advantage over other traders that just trade use robots or copy trades, but sometime it may take too long to create a good system, so other may opt to copy trade or use EA, we may want to be a good trader manually but time is money so if we waste so much time learning how to trade profitably it would be better to look for other way to profit in forex.

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    Quote Originally Posted by techboy View Post
    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.

    "What we sow today is what we reap tomorrow"
    of course it is so much important if we want to earn a consistent profit from the Forex market for this it must that we should have trading system. we should do trade on target base and as soon our target is complete we should exit the market

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    Quote Originally Posted by lucky1250 View Post
    of course it is so much important if we want to earn a consistent profit from the Forex market for this it must that we should have trading system. we should do trade on target base and as soon our target is complete we should exit the market
    I understand your sentiment my friend, every trader join in the forex market for only one reason which is to make money, but guess what a lot of traders loses money instead, the harsh reality is that only a few traders reach in the level of consistent profitability, that is why I give emphasis how important a trading system for a trader, not just an out of the box trading indicator or a cheap trading system sold by most online marketers and forex gurus wannabe. A complete and responsible trading system is a very important tool for a successful trading.

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

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    Quote Originally Posted by techboy View Post
    I understand your sentiment my friend, every trader join in the forex market for only one reason which is to make money, but guess what a lot of traders loses money instead, the harsh reality is that only a few traders reach in the level of consistent profitability, that is why I give emphasis how important a trading system for a trader, not just an out of the box trading indicator or a cheap trading system sold by most online marketers and forex gurus wannabe. A complete and responsible trading system is a very important tool for a successful trading.
    Mate..., Maybe you can give more explanation about a complete and responsible trading system, This is very important to be known by novice, what the components of a trading system that should they have, and what responsible should be handle by their system. I think it is interesting to be discussed further.

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    Quote Originally Posted by rinaji View Post
    Mate..., Maybe you can give more explanation about a complete and responsible trading system, This is very important to be known by novice, what the components of a trading system that should they have, and what responsible should be handle by their system. I think it is interesting to be discussed further.
    There is not much to it Sir, but for clarification when we say responsible system it only means that it wont only provide profits but also protect our equity during draw down period, a system with bad risk reward ratio cannot be considered responsible strategy, they may provide you winning trades for a while but once it start to lose your equity will be wiped out, responsible strategy are those strategies that has very good entry point and implement good risk reward ratio, so no matter what market conditions you are in, you will always recover from a draw down.

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    There are many benefits the trader will gain from having his own trading systems, the trader system that brings the success to the trader are the ones that the trader carefully planned and put in place. There is nothing more important than making way to the direction of the market with what the trader understands to be the correct thing, you can only do this by having your own trading system.

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    Quote Originally Posted by samprazaan View Post
    [lang=id]need a time for trader to create a trading system or their owns, because they need to know the ability and what is the best thing for them , but if they can make it, they will know how to develop the skill and maximize it,
    of course, it is very important to create a trading system then we do not need to follow and depend to the others,[/lang]
    It is right if creating system will need time and process because traders who want to create system, they must try the system to know its effectiveness before using it in real account. It means traders need to spend time for trying it in demo account and trading with it for several weeks to know good and bad timing to use it, how to create money management with it in every different condition of market.

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    Quote Originally Posted by andry777 View Post
    It is right if creating system will need time and process because traders who want to create system, they must try the system to know its effectiveness before using it in real account. It means traders need to spend time for trying it in demo account and trading with it for several weeks to know good and bad timing to use it, how to create money management with it in every different condition of market.
    Yes buddy its not a short term process at all we have to spend a lot of time on our learning and practice. We have to learn about many important term's like money management, risk management, trading plan, trading strategy. Regular learning and practice will give a trader a lot of trading experience and it will be better for a trader wealth

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    Quote Originally Posted by cozard007 View Post
    There are many benefits the trader will gain from having his own trading systems, the trader system that brings the success to the trader are the ones that the trader carefully planned and put in place. There is nothing more important than making way to the direction of the market with what the trader understands to be the correct thing, you can only do this by having your own trading system.
    For me having your own trading system is good. But in term of benefits its the same as using existing trading system. In fact its more advantageous to use existing one than to have our own new trading strategy. As having new means its not yet tested and proven effective. Unlike an existing one that its already proven and tested being effective.

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