This article looks at trading systems and hopefully it will give you a start to develop your own trading systems.
There are hundreds of systems out there.
• Inside Bar Trading System
• 1 Hour Trading System
• 20 day Trading System
• 3 Ducks Trading System
The system you use all depends on what type of trader you are, if you are more of a day trader the 20 day trading system may be too slow for you.
Like all systems, you should only really trade one system at any one time. If you trade more than one system then chances are you will end up over trading.
This in turn will mean your money management will be effected and this may result in you ending the system to early without giving it time to work properly.
The idea being that if you had a few bad trades then you may end up allowing emotion to come into your trading, which is a big mistake in trading.
So the emotions will over take your logic and you may end up losing before the system has a real chance to work.
If you are using a system make sure you test the system out thoroughly and stick to the rules.
Don't increase the risks after a few good trades but stick to your money management rules.
