Stock Trading Tips
Trading System
The most effective way to
become a successful as a trader is to learn directly from a professional who has already made all the
mistakes, and knows how to avoid them. All successful traders use some form of trading system, this is what
keeps them in check and making profits on a consistent basis. But just what is a trading system?, let me
try and explain with a simple example.
Trading is a game of probabilities. Imagine we're flipping a coin for dollars, heads I win, tails you win.
Heads and tails should come up 50/50. However, unknown to me you have a loaded
coin, for every 100 throws heads comes up 49 times and tails comes up 51 times.
You now have a license to print money, lets call it the "Tails Trading System". All you have to do is sit
back and bet on tails forever and eventually you will win all my money.
All any trading system gives you is an edge, but it is that edge that will make you money instead of losing
it. Do you have a trading system?. One of your top priorities is to understand
what your trading system is, and make sure that it is giving you an edge. Don't have a trading system?, you
are in trouble because effectively you are not a trader, you are a gambler and we all know that in the end
the house will always wins.
see also [ Stock Newsletters ] [
Technical Analysis ] [Stock Trading ]
|
