These set of rules include the:
1. Strategy to find your Entry Signal
2. Optimum Stoploss and Profit Target of the strategy
3. Money Management Rules that suits the expectancy of the strategy
1. Strategy to find your Entry Signal
2. Optimum Stoploss and Profit Target of the strategy
3. Money Management Rules that suits the expectancy of the strategy
All professional traders have a mechanical trading system that covers the 3 main aspects above.
So is your forex tradingsystem doing a good job on those 3 rules?
The primarily difference between trading system lies in their timeframes. You will find system either trading the movement within intra-day or from day-to-day movement (Swing Trading). Other differences lie in their risk-reward ratio and entry method (Price Action or Indicators )
PriceAction system will provide you the most reliable trading signals and rewards. However, new traders may have problems interpreting and trading the visual patterns correctly.
If that's the case, you may opt for indicators-based trading system. You will find it straightforward to derive the signal and thus less error-prone on your part. Alternatively you could find one that provides custom-made forex softwares to guide you.
I personallyuse two trading systems, a day trading and a swing trading system. It allows me to take advantage of the volatility within the day and huge amount of pips from the daily trends.
Finding a trading system that works is not difficult. The problem lies with finding one thatworks for YOU. Can you trust your trading system and use it consistently in all scenarios?
Without enough trades, you will not be able to realise the true expectancy or profitabilty of your forex trading system.
Above are some of the best forex trading system around. We have done detailed reviews on them to help you understand more.
