I believe that having a trading system is an important step on the way to successful trading. Even if the system doesn't work for the first time, it's already started. It is impossible to trade profitably on intuition. Only having clear decision-making rules can lead you to success. Trading includes more than just trading. This is also a rather tedious process of collecting and processing statistical data. If you learn how to collect and process information correctly, you will succeed in this field. With strict discipline, of course. Since if a trader is driven by emotions and constantly violates the rules of the trading system, then he will definitely never achieve the result. It is much better to follow the rules of the trading system and not earn, than to not follow the rules and not earn. In the second case, you will definitely not get the result. And in the first case, if you follow the rules of your vehicle, record all transactions in as much detail as possible, analyze the information received, try to identify errors and make adjustments to the system, then slowly you will get a positive result from trading. And at the very least, this will speak about your discipline and ability to control your emotions.
Without statistics and a trading system, you will not be able to draw any conclusions from your trading. You can trade for a year or two, be in the red and not understand the reason for this result. This is why many people give up trading. But if you have a trading system, you will keep a log of transactions in as much detail as possible and analyze your trade, you will be able to identify your mistakes, Refine the system and get results. This process is very slow and time-consuming, but there is no other way. You can't get quick results anywhere.
If they try to teach you how to trade based on intuition and without learning a clear plan for making decisions, run away from such a teacher. Any attempt to predict something in the market will fail in the long run. Especially if you have no trading experience. In fact, even trading on intuition, it will be based on some specific experience gained over the years of trading. But this is not an impulse deal, because we wanted to buy. And in fact, many seem to be trying to write a trading system, take some simple template options and believe that their system will allow them to earn. All models must be tested, and you must understand the probability of working out a particular model. Again, based on testing and based on collecting statistics (transaction logging).
And you also need to understand how the market works, how it functions, and so on. It is based on this knowledge that the vehicle will be formed.
This is the reason why most analysts do not make money in the market. You can endlessly guess what will happen to the price, how this or that news will affect, but this will give us little in trading. Therefore, do not listen to other people's advice, or at least pass it through yourself and analyze it. I have already told you about this in a separate article, here is the link.
Therefore, no matter how you trade, you must have a clear plan of action. It doesn't matter what you trade, candlestick patterns, trend trading, side-by-side analysis, and so on. The main thing is to use the methods that can be formalized as much as possible. Simple example. You can formalize the horizontal level 100%, but you can't formalize the inclined level. You can even test yourself. Try to write rules for inclined trend levels and run yourself through the history of the year several times in two years. Each time the results will be different. But many alleged gurus of trading, trying to teach in the following way. Look..here there is an inclined level, you see the price hit twice, so you need to buy from the lower border, and so on. This is all so subjective that any beginner will merge with this approach. We need rules. How to draw a level, how it should be traded, how many bars, what rollback should be after each bar, and so on.
In General, what is the conclusion from all of the above. Any decision in trading should not be based on intuition, but on clear rules. And the more detailed it is, the better. Not every model can be 100 percent formalized, but you need to do it as much as possible. And it is desirable not to deviate from this plan. Or make adjustments to the system. There are of course exceptional situations in the market when, based on your experience, you understand how the price can behave. But each such case needs to be worked out, draw conclusions and then put into the system. Even when investing, you must have a plan for making decisions. Clear investment goals. You don't have to buy a long-term stock just because you want to buy it.
I'll leave it at that. I hope this article has convinced you of the importance of the trading system. If you are still trying to trade on intuition, then try to structure your knowledge a little and make at least some decision-making plan. Record your transactions. And in a year or two, this will significantly improve your results.
Without statistics and a trading system, you will not be able to draw any conclusions from your trading. You can trade for a year or two, be in the red and not understand the reason for this result. This is why many people give up trading. But if you have a trading system, you will keep a log of transactions in as much detail as possible and analyze your trade, you will be able to identify your mistakes, Refine the system and get results. This process is very slow and time-consuming, but there is no other way. You can't get quick results anywhere.
If they try to teach you how to trade based on intuition and without learning a clear plan for making decisions, run away from such a teacher. Any attempt to predict something in the market will fail in the long run. Especially if you have no trading experience. In fact, even trading on intuition, it will be based on some specific experience gained over the years of trading. But this is not an impulse deal, because we wanted to buy. And in fact, many seem to be trying to write a trading system, take some simple template options and believe that their system will allow them to earn. All models must be tested, and you must understand the probability of working out a particular model. Again, based on testing and based on collecting statistics (transaction logging).
And you also need to understand how the market works, how it functions, and so on. It is based on this knowledge that the vehicle will be formed.
This is the reason why most analysts do not make money in the market. You can endlessly guess what will happen to the price, how this or that news will affect, but this will give us little in trading. Therefore, do not listen to other people's advice, or at least pass it through yourself and analyze it. I have already told you about this in a separate article, here is the link.
Therefore, no matter how you trade, you must have a clear plan of action. It doesn't matter what you trade, candlestick patterns, trend trading, side-by-side analysis, and so on. The main thing is to use the methods that can be formalized as much as possible. Simple example. You can formalize the horizontal level 100%, but you can't formalize the inclined level. You can even test yourself. Try to write rules for inclined trend levels and run yourself through the history of the year several times in two years. Each time the results will be different. But many alleged gurus of trading, trying to teach in the following way. Look..here there is an inclined level, you see the price hit twice, so you need to buy from the lower border, and so on. This is all so subjective that any beginner will merge with this approach. We need rules. How to draw a level, how it should be traded, how many bars, what rollback should be after each bar, and so on.
In General, what is the conclusion from all of the above. Any decision in trading should not be based on intuition, but on clear rules. And the more detailed it is, the better. Not every model can be 100 percent formalized, but you need to do it as much as possible. And it is desirable not to deviate from this plan. Or make adjustments to the system. There are of course exceptional situations in the market when, based on your experience, you understand how the price can behave. But each such case needs to be worked out, draw conclusions and then put into the system. Even when investing, you must have a plan for making decisions. Clear investment goals. You don't have to buy a long-term stock just because you want to buy it.
I'll leave it at that. I hope this article has convinced you of the importance of the trading system. If you are still trying to trade on intuition, then try to structure your knowledge a little and make at least some decision-making plan. Record your transactions. And in a year or two, this will significantly improve your results.
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