Trading System by Definition
A Trading System by definition is a logical set of directives indicating to the trader when to buy or sell a particular market. Rarely is the trader required intervene. Trading Systems can be manually traded, by following trading directions on a computer screen, or may be automated allowing the computer to register market trades. Both methods are widely used today.
Those that utilize these systems are considered “Systematic or Mechanical” traders. While those use the manual method of analysis to gather data and the rely on experience are ”Discretionary” traders. Generally the results of the Systematic traders are superior to that of Discretionary money managers.
Studies indicate that manual, discretionary, trading accounts generally lose money more often by not using a Trading System. The significant rise in Trading Systems over the past 10 years is evident as the brokerage firms are becoming increasingly aware of the benefits through the use of Trading Systems and some such as TD Ameritrade offer their ThinkorSwim and PaperTrade Systems to their retail clients.
With the with the mobile computing and improved algorithms more investors prefer the benefits of this alternative trading system. Especially with many more of the systems being able to reduce loss and increase the profit. Not to mention the benefits of a more logical and disciplined approach to their investing with less personal time involved.
Whether you are interested in a forex trading system, binary options trading system or a home trading system ensure you get your basics grounded first.
One method start grounding your knowledge is to partake in our complimentary 7 lesson trading course. Just complete the quick form below to gain access.