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Using a Trading System Which is Not Yours
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
For serious trading activity in the Forex market a trader should use some trading system. Currently, there are a lot of different Forex trading systems, compiled by experienced traders. So you do not have to develop your own from scratch and can take many ideas from existing trading systems.
This is easy to do, given the availability of such systems. Some of them are free, others are expensive but their cost does not say that some are better and others are worse. To understand the true value of the trading system you can only by working with it. After all, each person needs to pick up the system for himself, for his habits and priorities. Therefore, many of the existing trading systems can not be suitable to you.
You need to properly assess the ability to trade effectively with the trading system you want to apply to Forex work.
When choosing a trading system, be sure to pay attention to whether it would suit the style of life that you lead, and whether it is suitable to your character. For example, if you have a basic job that takes all your day, then the system of trade in which you need to be near the monitor during the whole day, watching the bids will definitely not work for you.
In addition, there are also trading systems that before they bring you real profits, initially losing up to half of your existing capital. Can you sit back and watch as the money goes? Do you find yourself prepared for the fact that before there will be concluded one profitable trade, the system will bring you eight or ten losses? There are traders who are among the best but who also suffer losses up to half of their existing capital before they make big money.
All of the above should be taken into account when creating your personal trading system in the Forex
market. Among various existing systems you should highlight things, which include components that are suitable to your trading style and then combine your own Forex trading system.
Only by combining strategy and Forex trading systems, experimenting with their components, you can create your personal, suitable for you trading system.
Suppose you have decided on a trading system that will use. Further we recommend that you carefully learn the components on the basis of which it works. A chance to create something completely new in the trading system field is very small, so use what is already invented and adjust it for you.
But do not forget that a good trading system can’t do without key components such as:
- Rules of entry into the market;
- Money Management Rules;
- Rules of exit from the market.
These are the basic components. Any trading system will not make you a successful Forex market participant without them.