Anyone who is serious about trading needs to have a Forex Trading
System that is tailored to them, but there is no reason to start
constructing your Forex trading system from scratch. Why try and reinvent the wheel when you can benefit from
other traders years of experience and borrow your trading system's
ideas and concepts? It's easy to do, and there are some pretty good Forex trading
systems out there for you to work with. Some of them are free and some
are very expensive, but the price tags don't always reflect the actual
value of the Forex trading systems. But, many of these systems won't
work for you, and I am not talking about out-right dishonesty here,
which can be a big problem when trading. What I am talking about is
your ability to effectively trade with the system that you may be
considering using or buying. You need to use a system that matches your life style and
personality. If you have a day job (not trading), a Forex Trading
System that requires you to stare at a screen all day wouldn't be
appropriate. You would be distracted at work and miss the opportunities
to make money, or even worse, you will not close a trade effectively
and could lose money. Some Forex trading systems have a potential to lose 20, 30 or
40% of your money before they are profitable. Can you handle a system
that can drop your trading capital to half before making money? Or, are
you prepared to have a string of 8 to 10 loses in a row before you have
a winning trade? Some of the best traders in the world lose money on
more than 50% of their trades. These are all important points to
consider when you are creating your Forex Trading System. Choose
aspects of the different systems that are out there that fit your
trading style best, and then build your Forex trading system. An excellent trading method, which was made famous by Richard
Dennis and William Eckhardt and is sometimes referred to as Turtle
Trading, is one of the best Forex trading systems that I know of. They
get returns in excess of 20 to 100% per year using this system. But,
could most traders trade their system? Not a chance! Dennis and
Eckhardt also loose on over 60% of their trades. Once you know what sort of Forex Trading System will work
best for you, look at the components that make it work. Face it; if you
are a new, or even a fairly serious, trader how likely are you to come
up with a totally new concept? There are some very smart and wealthy
traders out there. Why not use their ideas. Consider Dennis and
Eckhardt's turtle trading, their system is based on a "breakout"
method. I know most traders could not trade using their exact method,
but they could take parts of it, such as the breakouts, to confirm a
trend. You can also use other Forex trading systems to give you an
outline of what parts a system has to have for it to make money. All
great Forex trading systems have these three basics: 1. Entry Rules,
2. Money Management Rules and
3. Exit Rules.
Study and learn from the Forex trading systems out there,
borrow their concepts, and steal their ideas. It will put you on the
track to the system that will make you a successful trader.
|