We are looking forward to, that you have made it this far. In high school we are and with trading systems, Money Management and Personalities of FOREX Traders. With the completion of high school you should definitely have the basic knowledge to take the first steps on the foreign exchange market with a FOREX broker that we recommend.
We recommend that you practice in the demo account for as long as possible, until you feel safe and comfortable. Don't put yourself under unnecessary pressure by trading real money too early. However, you should not be too afraid because a little thrill is always there even with long-time professionals.
Now we wish you a lot of fun with the last part of the FOREX school…
FOREX Trading System
Now we come to a crucial stage in the action, the creation of the personal trading system. If you simply search for the search term on Google “FOREX Trading Systems” input, you will find a lot of guys who claim that “Holy Grail” System with which you will soon be rich and for only one par thousand euros you can use this system.
These systems claim to make thousands of pips a week without ever losing. They will present you with profit statistics achieved with this system, Your eyeballs will be displayed in $- Transform characters, while you sit and think, “Wow, I can make so much money if I make this guy 3000 Yours give. With his system, that makes thousands of pips in a week, I have my money back in no time”.
First, shift down a gear.
There are a few things, you need to know, before you give such types your credit card number and thus buy a system.
The truth is, many of these systems actually work. The problem is, that there is a lack of discipline, To follow the rules that make up the majority of the success of a system.
The next punk of truth is, instead of paying someone thousands of dollars for a system, better spend some time developing your own trading system. That only costs you your time, and the money saved can be used as capital for your trading account.
Because we are already at the truth, Developing a trading system is not as hard as you might think. It is harder to comply with the rules, that you have developed during the development of the system. There are many sites that try to sell a system, but none of these people will teach you, Design your own system. This chapter will show you step, how to develop a trading system that suits you. At the end of the chapter we will show you an example of a system we trade with, to illustrate how it can work.
Objectives of your trading system
I can imagine that you are thinking: “The goal of my trading system is to, ten million euros to earn!”. Although this is a wonderful goal, isn't exactly the kind of goal that makes you a successful trader.
When developing your system, you would like to 2 Achieve very important goals:
- Your system should be able, Identify trends as early as possible.
- The system should be capable, To protect you from fluctuations.
If your trading system includes these two points, then we guarantee that you will be successful. The hard part of these goals is, that you often get in each other's way. For example, do you have a system that primarily aims to identify trends as early as possible, then you are likely to be deceived by your indicators more often. On the other hand,, if the main goal of your system is, To protect you from fluctuations, you will probably often be late and miss good trades.
Your task in developing a trading system should be to find a compromise between the two goals. Find a way to discover trends early, but at the same time a way that helps you to distinguish wrong from right signals.
Always keep these two goals in mind when developing a trading system. They will bring you a lot of money!
