Important Points about Trading Systems

You May Make Money With Trading Systems If:

1. You use a system that has a greater chance of winning over losing.
2. You have back tested the system properly.
3. You use a system that will work in different markets.
4. It has solid rules to trade by.
5. You work just as hard at the exits as you do on the entry.
6. You use stops in your trading system.
7. You can get consistent returns.
8. The system is not complicated, simply simple.
9. You are shown how to use larger time frames to give you heads up on trades in smaller time frames.
10. The system gives methods of monitoring stops.
11. You can use smaller time frames to time both the entry and exits.
12. The system teaches small draw downs.
13. You know how much you can lose.
14. You have at least two indicators to confirm a trade signal.
15. The system allows you to make management decisions when necessary.
16. You want to trade systematically; you need to take every trade in the direction of the trend.

You Will Lose Money With Trading Systems If:

1. You do not stay with the system long enough to learn it.
2. You do not develop the discipline of following the rules.
3. You over analyze the signals.
4. You rely on results that are not correct.
5. The system does not fit your personality and trading style.
6. You use a system that asks you to use more money than you can afford.
7. You have not back tested the system enough and do not know how it works.
8. The system adds too many variables and conditions.
9. You make things too complicated.
10. The system was a loser to start with.

Questions to ask yourself before you trade:

• Do I believe in the system?
• Did I do enough back testing to understand the system?
• Is the system to advanced for my skills?
• Is this really a system for me?
• Does the system use stops and exit signals for each trade?
• Do I second guess the system?