There are various trading systems and approaches out there. There are many natural ones written in trading articles, magazines, books and on trading-related sites. You can purchase them as software, or you can submit to them regularly.
Novice dealers say they don't have the experience, the character, the talent nor the heads to run out how to trade correctly. They would first purchase a schedule or submit to a trading system for hundreds or in some instances thousands of dollars. They assume they don't have to do any without being discussed what to purchase when to buy and how much of it you must purchase.
There are causes why a trader would accept a system or strategy that somebody else produced and tested:
1. It is evident. A beginner trader doesn't want to inquire how the market works and how he communicates with that market. He doesn't want to teach himself: he doesn't require to worry about books and seminars. He doesn't demand to examine the system since the seller has previously done that for him and reported promising possible or actual results.
2. A novice trader expects to receive a trading system at a 'bargain' price: seldom even for free.
Chances of trading a system or strategy produced and examined by someone else are the following:
There are many broken arrangements out there. They may be wrong because their opinions and their tools may no longer be correct, accurate or efficient. As a beginner trader, how can you differentiate between the sound systems and the small systems if you don't understand how trading systems are built?
Discipline and confidence
All systems have drawdown times. Some sound systems may not gain money for six months or a whole year. Even if it was a valid system, can you proceed to follow it even if it provides you a loss after loss after a loss? How can you regard it if you do not have faith in it? How can you be sure if you do not know the ins and outs of the policy and if you have not examined it yourself?
I do not think that people would instinctively follow a system even if they were announced that it would cause them riches. I can present someone a trading system; I can provide him with great open or actual events and yet, he would not be ready to follow it.
I recognize giving my dad a fully-mechanical trading method I explained. I showed him a few shallow rules, and I said not to challenge them. All he had to make was to replace them. We both exchanged it for two months; I turned my small account by approximately 50% (it appeared to be a great two months), but he was wasting. He questioned why. I requested to see his trading records. When I glanced at his trading records, I noticed that he kept violating the rules. When I questioned him why he opposed them, he wanted to update the results after it had a few of losing trades. He was attempting to change the results. According to him, the scheme required him to do what he believed was not right during specific market requirements, so he did not follow it. I found manageable errors too, covering opening trades at market price rather than serving for buy and market stop orders at support and protection levels to get triggered. I also suggested that he performs trades at the close, but usually, he sold two hours before or after the performance at his discretion. There were several more rules he broke. He is a talented man: a former civil engineer and soon a director for a big organization. Why could he not understand instructions? It is easy. He did not know the logic behind the laws I had set, and so he did not enjoy them. His money was on the road, and after a string of losses, he failed faith in the system gently than I did because he did not receive and test it himself.
To defeat the hazards before, I see no alternative except for a trader to determine how to improve his trading methodology. This is the unique way an operator can identify if a particular system or strategy is proper or not.
Once a player learns how to improve systems and procedures, he can suddenly be fully equipped to examine them as well. By this period, he might also find that he is greater off using the system he built because it frequently grows difficult to obtain another system more adapted to his profit goals while operating within his danger tolerance levels. It is possible that once he receives this level of support, he will just acquire other ways only to operate them, grab the bits he likes and attach them to his system. To me, the paradox is that for a dealer to know which system to buy, he must first discover how to build a system. And after knowing how to create a system, he will no higher have the necessary to buy one.
In conclusion, then, I would have to assume that if you are not willing to learn how to improve your trading methodology, then maybe you should consider investing your money to somebody else to spend. Address it to anyone who is trading a system that he received and examined himself because he is more suitable to have the faith and courage to follow his set of rules.
- Date: 19 January 2017 Thu 11:13
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