Thursday, May 17, 2007

How many System for trading ?

Iam sure that you have at least one strategy now for trading, and you
might loose or make money from it. But one strategy is enough ?
Many traders stick only to one strategy for his trading. Is it effective ?
The answer is NO.

Let's see the consequences; Normaly passive or active traders will start
to trade at once when they are in front of their desktop eventhough their
strategy did not give the signal. And at the end they will quess or gamble.
One strategy might not give you a signal everyday and you might not be
in front of your desktop when the signal released. Tha'ts why you must
needs more than one strategy. If one can not give the signal,the other one
could give you or even all can give you at the same time.

The most impostant things is that all the strategies have their own sensitivity
toward the price direction especially when the price not trending.

This is the most difficult situation that strategy catch..but sometimes if the
strategy can catch the signal, it will be powerfull and making a very big profit.

And now..it's your choice to stick to only one or get some other new. One
strategy will force you to gamble or to guess when it can not give you a
signal at the time you are ready to trade. You must avoid this critical situation.

Last time I have a good strategy which I purchased in internet, but it did not give
me signal everyday I could not wait...for a long time not to trade..and fimally
quess or gamble...and as a matter of fact I lost my trade. When the strategy or
system gave the signal, I was not in front of my PC. It can also happen to you.

Trading will involve your emotions your reaction, attitude, the difference is only
their level. This is the reason to choose more than one strategy to satisfy your
emotions . He...he.....he....

Happy trading

Krisman

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