Trading systems

Your trading system in general is the way you trade, the combination of analyses that you use, MM (money management), RR (risk reward, win/loss ratio), and the time horizon of your positions.  You can find many tips on how to build a profitable trading system on the Internet. The truth is that this can only be done through practice and trading on a demo and live account. There will be another article to explain what MM is, as this should be applied to your strategies with iron discipline. After setting firm rules for your money management, then you can define RR parameters, and type of analyses. It is best to start using a combination of technical and fundamental analyses. For the novice trader it will be easier to use the news in the trading platform calnedar to determine the market senitment. In due course, you will find out what time horizon you like the most. With practice, acquiring new knowledge and experience, you will gradually find your own style. Only then you will have your own trading system ready.


Trading systems can often be copied. You may also encounter many ads for sale of different strategies. The fact that a certain system is working for someone else, does not mean it will bring profits to you as well. The reasons for this are mostly psychological. When you have not created your own system, it will be hard to go through the series of possible losses (as it is with any system), and to keep faith in it. You will most likely give it up right before things turn in your favor. If it is not your own system this can bring you sleepless nights or will cause you boredom and dissatisfaction. Here comes the question ”If someone has a winning system why would they offer it to someone else for free or a small amount of money that they would normally earn for a day or two by trading with it?”.