Trading is a craft, an inner strength, and a skill that will become more and more proficient as trading experience grows.
It takes different amounts of time for each person to grow from a trading by instinct to a systematic trader. Some may take a few months, some may take a few years, or even longer. But in the end, the vast majority of those who can survive in the market and make long-term stable profits are systematic traders.
The trading system clearly stipulates what operations traders should do and how much funds they should use, and this is what a complete trading system should do.
How to build a trading system?
First of all, we need to clarify what aspects a complete trading system includes. For this part, you can refer to my other article "What does a complete trading system include?" It summarizes the parts that a trading system should include.
Starting from this article, I will serialize some methods on establishing a trading system for your reference.
First of all, it should be made clear that only a trading system that suits the trader himself is a good trading system. The suitability here includes personality, work and rest, working hours, etc.
Think about how much time you have available to trade every day and how long you can take to deal with trading opportunities when they arise. These are all realistic situations, because no one can sit in front of a computer and watch the market intently every day, and there is no need to do so.
Therefore, building a trading system does not start with technology, but rather considers the entire framework from a higher level perspective than technology. Once the framework is set, each part of it can be gradually adjusted.
This framework roughly includes the following:
1. Trading Market
2. Holding period
3. Trading frequency
4. Transaction Subject
5. Total amount of transaction funds
6. Maximum risk you can take
7. Trading time
8. Trading Tools
These have nothing to do with technology, but they are the parts that should be confirmed first in the trading system, and then consider subsequent technical analysis.
