How to choose the right Trading system

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3 years ago

Do not think that a profitable trading system can guarantee the success of every transaction you make!

Any profit is composed of small losses and big gains. Any trading system has weaknesses and losses are inevitable. For the trend tracking system, it does not require the number of profits to be greater than the number of losses. It only requires continuous use of small stop losses to find large profit opportunities. Such a system requires users to continuously accept small losses. ready. For the trading system, it pays more attention to the pursuit of profit times than losses, and it pursues accuracy.

Therefore, when choosing a trading system, investors must be clear about which system is right for them, and must not choose blindly. Speculative trading requires investors to pay close attention to every move in the market. Volatility is his source of profit, and there should be no interference in the transaction. On the contrary, trend trading is the opposite. It taboos to watch the market carefully, which will destroy his overall trend. Grasping, volatility is the source of his loss, he only needs to pay attention to whether the market trend changes. However, most investors in the market are trying to obtain trend profits by carefully watching the market, which makes them unable to grasp the speculation and trends.

The essence of system trading is to deal with what is happening, not what will happen in the future. It is to trade based on trading signals, not to predict the market. However, many people in the futures market spend too much time to deal with what will happen in the future, but are at a loss for what is happening. This resulted in his trading cannot be carried out effectively. He always wants to walk in front of the market but ignores the reality of the market, so that his transactions are in illusion and lack the basis of reality. This violates the nature of the trading system. The correct trading idea is the prerequisite for using the trading system!

When the system is at a loss, don't easily think that the system needs to be changed or replaced. Loss is normal and must be accepted. At this time, you should tell yourself how to improve your ability and patience to deal with difficulties. And in the profitable period of the system, you must not be clever, thinking that you can use your trading ability to improve the efficiency of the system, at this time, observing discipline is better than everything! The difficult period of the system can improve your trading ability, and the harvest period of the system can test your self-discipline spirit!

For system traders, the ups and downs of the market are not important, but the execution of trading signals is important. Because the trading signals of the system often contradict your view of the market, many trading opportunities are missed in the hesitation of investors, which is the key to the different trading results of the same trading system. Whether the market is rising or falling, the system will send out trading signals at critical moments. The careful implementation of the trading system can greatly simplify our transactions and make transactions more simple and effective. This is the fundamental reason why the trading system is so important.

First of all, there is absolutely no perfect method system. You have to choose between a bear's paw and a fish, which is why there is no so-called holy grail of trading. Faster, more timely and more sensitive signals will inevitably bring more false signals and more stop losses. But a more stable, safer, and reliable signal will inevitably have to give up a large section of the market, or only grasp fewer trading opportunities. The system has its own advantages and disadvantages. In the long run, the effects and profitability of various methods and systems are basically the same. Therefore, the method and system are not a problem at all. The problem is how to adhere to the system and manage the capital position well.

The things that prevent a person from succeeding are all in the heart. Experience determines emotions, and emotions determine behavior. No matter how good the system is, there are losses, and they are frequent losses, and these loss experiences can hardly make a person in a normal mind indifferent. Looking at their frequent losses, no one's heart can stand it. But you must accept these losses. If you are smart and want to deviate from the method system in future transactions to avoid losses, or you want to close your position as soon as possible to lock in profit, I guarantee... you will definitely miss the real profit of the subsequent substantial profit opportunity.

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