The Importance of Creating a Trading System! - Page 4
Page 4 of 394 FirstFirst 123456781454104 ... LastLast
Results 31 to 40 of 3933

Thread: The Importance of Creating a Trading System!

  1. #1
    Registered user techboy's Avatar
    Join Date
    Aug 2013
    Posts
    6,958
    Promo (¢)
    0
    Thumbs Up
    Received: 82
    Given: 2

    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"

    Not allowed!
    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

  2. #31
    Registered user techboy's Avatar
    Join Date
    Aug 2013
    Posts
    6,958
    Promo (¢)
    0
    Thumbs Up
    Received: 82
    Given: 2
    Quote Originally Posted by Earnperfect View Post
    Right buddy we have to combine our trading strategy with a good consistency and discipline implementation. Breaking trading rules we are breaking our business slowly slowly. Market is very dynamic sometime and can make use looser and failure in forex. A trader should have good capability to control his emotion during frustration period
    Actually these are the things that a trader must do in order for him to succeed and become profitable, yet these are also the hardest part to do in trading, in fact breaking rules are very common activity on most traders, it is but normal that when he suffers many or successive loses most traders will suddenly have some doubts on their recent strategy that may lead to alteration of his trading rule or worst he may become an indiscipline trader.

    Not allowed!
    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

  3. #32
    Registered user
    Join Date
    Sep 2013
    Posts
    6,535
    Promo (¢)
    315
    Thumbs Up
    Received: 72
    Given: 21
    Quote Originally Posted by techboy View Post
    Actually these are the things that a trader must do in order for him to succeed and become profitable, yet these are also the hardest part to do in trading, in fact breaking rules are very common activity on most traders, it is but normal that when he suffers many or successive loses most traders will suddenly have some doubts on their recent strategy that may lead to alteration of his trading rule or worst he may become an indiscipline trader.
    if you have a new strategy, you have to test the trading strategy on a demo account first, do not be directly used in a real account. using a new strategy, you'll start from the beginning again. an evaluation, so that you will be able to assess the strategy, if you do not fit in with that strategy, do not use the new strategy.

    Not allowed!

  4. #33
    Banned
    Join Date
    Jan 2014
    Posts
    4,945
    Promo (¢)
    0
    Thumbs Up
    Received: 125
    Given: 262
    Quote Originally Posted by ngalapreceh View Post
    if you have a new strategy, you have to test the trading strategy on a demo account first, do not be directly used in a real account. using a new strategy, you'll start from the beginning again. an evaluation, so that you will be able to assess the strategy, if you do not fit in with that strategy, do not use the new strategy.
    Agree about that we can start our learning with demo trading learning and can test our trading strategy in demo trading account. A good evaluation is very important we should use a new trading strategy only if we getting good consistent result by it and we can't test it only for few days we need at least 1 or 2 month result

    Not allowed!

  5. #34
    Banned
    Join Date
    Nov 2013
    Posts
    14,851
    Promo (¢)
    0
    Thumbs Up
    Received: 106
    Given: 14
    Quote Originally Posted by Earnperfect View Post
    Agree about that we can start our learning with demo trading learning and can test our trading strategy in demo trading account. A good evaluation is very important we should use a new trading strategy only if we getting good consistent result by it and we can't test it only for few days we need at least 1 or 2 month result
    It is the right side i will start my training, it is not good idea to start it other wise, the demo can make you lose nothing, this is wise to me, and i believe many trader should be wise like this too. I also like what you said on consistent results, this is the end results of good system developed by any trader, this is not mostly common.

    Not allowed!

  6. #35
    Registered user Hukam's Avatar
    Join Date
    Jan 2014
    Posts
    8,693
    Promo (¢)
    7,140
    Thumbs Up
    Received: 252
    Given: 504
    Quote Originally Posted by silverlady View Post
    It is the right side i will start my training, it is not good idea to start it other wise, the demo can make you lose nothing, this is wise to me, and i believe many trader should be wise like this too. I also like what you said on consistent results, this is the end results of good system developed by any trader, this is not mostly common.
    Without any demo learning its not a good idea to start real trade so mate your decision is good that demo trading is good enough to get good training. There is no need of real money in demo we can test our trading strategy and can build our confidence. That's a beauty of demo trading that we are doing trading without any real money

    Not allowed!

  7. #36
    Banned
    Join Date
    Oct 2013
    Posts
    11,332
    Promo (¢)
    0
    Thumbs Up
    Received: 243
    Given: 193
    Quote Originally Posted by Earnperfect View Post
    Agree about that we can start our learning with demo trading learning and can test our trading strategy in demo trading account. A good evaluation is very important we should use a new trading strategy only if we getting good consistent result by it and we can't test it only for few days we need at least 1 or 2 month result
    we can use demo account to develop the system or modify, make some experiments and also evaluate our trading system to see the weakness and fix it, we need a time for it, and we have to use the time with maximum, but i guess there is no specific of time for how long have to use demo account

    Not allowed!

  8. #37
    Banned
    Join Date
    Jan 2014
    Posts
    4,945
    Promo (¢)
    0
    Thumbs Up
    Received: 125
    Given: 262
    Quote Originally Posted by newentry View Post
    we can use demo account to develop the system or modify, make some experiments and also evaluate our trading system to see the weakness and fix it, we need a time for it, and we have to use the time with maximum, but i guess there is no specific of time for how long have to use demo account
    I think so you are right buddy, I think 1 or 2 monthly could be less too depend upon our learning skill and hard work. We should take a lot of time as much as we want to prepare ourself full for real trading account journey. Demo trading account is best for experiment, evaluation, practice etc and that's true that there is no fix time limit of learning

    Not allowed!

  9. #38
    Registered user techboy's Avatar
    Join Date
    Aug 2013
    Posts
    6,958
    Promo (¢)
    0
    Thumbs Up
    Received: 82
    Given: 2
    Quote Originally Posted by ngalapreceh View Post
    if you have a new strategy, you have to test the trading strategy on a demo account first, do not be directly used in a real account. using a new strategy, you'll start from the beginning again. an evaluation, so that you will be able to assess the strategy, if you do not fit in with that strategy, do not use the new strategy.
    Correct, an strategy should be tested first in demo and make the necessary tweaking, familiarize how it function on real market conditions, once we are comfortable in using it and becomes profitable in a couple of months(at least 2 or 3 months) then its time to test in real trading account and see how our emotions play during trading.

    Not allowed!
    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

  10. #39
    Banned
    Join Date
    Nov 2013
    Posts
    14,851
    Promo (¢)
    0
    Thumbs Up
    Received: 106
    Given: 14
    Quote Originally Posted by techboy View Post
    Correct, an strategy should be tested first in demo and make the necessary tweaking, familiarize how it function on real market conditions, once we are comfortable in using it and becomes profitable in a couple of months(at least 2 or 3 months) then its time to test in real trading account and see how our emotions play during trading.
    It can be created with serious mind, the strategy you text in demo may work or not too, it is possible to work when it is demo, when it is real trading it will not work. I believe the demo testing should not be long before traders use the real testing for it. The 2 months is more to test the demo, the 1 month is good.

    Not allowed!

  11. #40
    Registered user Hukam's Avatar
    Join Date
    Jan 2014
    Posts
    8,693
    Promo (¢)
    7,140
    Thumbs Up
    Received: 252
    Given: 504
    Quote Originally Posted by silverlady View Post
    It can be created with serious mind, the strategy you text in demo may work or not too, it is possible to work when it is demo, when it is real trading it will not work. I believe the demo testing should not be long before traders use the real testing for it. The 2 months is more to test the demo, the 1 month is good.
    No matter how much time you are taking, its important to check that you are gaining consistent profit or not, if you are following the same approach in both demo trading and real trading account then result would be same in both accounts. But I can't say about trading psychology control, beside of it, 2,3 months are good to test any strategy in demo account.

    Not allowed!

Page 4 of 394 FirstFirst 123456781454104 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •