the Forex trading systems that are out there.
There are plenty of options to select from and even more opinions on if you should use them, how you should use them and which ones to use.
Before you can make a decision about this, you should consider what the trading system can actually offer to you and why it may or may not be the best option for your particular needs. Some systems are no doubt better than others.
There are many systems out there and some of them are definitely going to be a better option than others are. The key here is not to buy a system or use a free one, based solely on that factor but to know what to look for.
3 Things you need to consider before Buying a Forex Trading System
Before you give the thumbs up to a system please check if it gives you the following 3 things.
Match The System with Your Style of Play
1. The first thing you need to consider is that the trading system needs to work with your own style of play. In other words, no matter if you are a long term swing trader or if you are a short term day trader, the system needs to work for your particular goals and your particular needs as such. But the question is do you really know what is your “style of play”?
2. Next, consider how the Forex trading system addresses clear entry and exit signals. No matter which system you invest in, it is critical that you know that the system has these types of signals and that they work perfectly.
If this is in place, this means there is no chance for your emotions to come into your trading. You want there to be 100 percent mechanical rules in place to protect you so that you do not make bad decisions at the wrong moment. Well not 100% because that is not realistic when it comes to trading with you need to have a set of parameters “objectively” define for each situation in the market. e.g. What would you do if the market moves in an upward of downward trend but the trend is either too fast or too slow? What would happen if the market suddenly spiked 100 pips in your favour? etc
3. There should be some set of defined rules on stop loss size and placement. Money Management is KEY. Many trading systems you will find out there do promise to provide you with high returns. They may or may not be able to deliver on this promise. If they are going to deliver they need to have good money management rules in place.
You want there to be a stop loss placement so that you can avoid seeing your trading capital erased too fast based on just a few trades.
No matter what you chose, you have to have a Trading System because without it you’ll be lost. Trading requires you to treat it like a proper business because it is a proper business and business planning is key to any successful business.