Saturday 11 January 2014

Mechanical system - the key to many of the most profitable traders' success.

A good mechanical trading system automates the entire process of trading.
The system provides answers for each of the decisions a trader must make while
trading. The system makes it easier for a trader to trade consistently because there is a
set of rules which specifically define exactly what should be done. The mechanics of
trading are not left up to the judgment of the trader.
If you know that your system makes money over the long run, it is easier to take the
signals and trade according to the system during periods of losses. If you are relying on
your own judgment during trading, you may find that you are fearful just when you
should be bold, and courageous when you should be cautious.
If you have a mechanical trading system that works, and you follow it consistently,
your trading will be consistent despite the inner emotional struggles that might come
from a long series of losses, or a large profit. The confidence, consistency, and
discipline afforded by a thoroughly tested mechanical system are the key to many of
the most profitable traders’ success.

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