These are some principals and techniques that I have found to be indispensable in my trading career. Once you`ve begun using them, I`m sure you`ll feel the same.
First, the best trading systems have only one market to trade in. Real money is madee https://npfinancials.com.au/ by mastering your chosen market. Many traders fall into the trap of thinking the more they trade, the more money they will make. Unfortunately, this does not hold true.
In a similar vein to this, keep the best trading systems– really super simple. Those same traders often complicate the best trading systems so much that they become nearly impossible to trade. This is usually accomplished through over optimization, adding far too many indicators. Instead, keep your plan your best trading systems as streamlined as possible. That way, it will be robust enough to trade across many market conditions. Through testing, I have found that over optimizing a plan will make it perform better on historical data. However, these plans usually trade worse in real time, thus taking away the goal to having the best trading systems.
Once your best trading systems are up and running, document it. All successful traders that I come in contact with document their plan – are my plans really the best trading systems or do I need to take some complicated bugs out of it? They have their exact trading methodology written down. The traders who lose money don`t have their trading methodology written down. You should clearly write out your methodology. Why is it so important? When you sit down and spell out how you perceive the market, you are accepting the fact that you might be wrong. You are beginning to accept responsibility. With this acceptance comes a renewed commitment and dedication to your system that will allow you out last the markets fluctuations. This is a key element to keeping your plan the best trading systems.
This next strategy is over-looked by almost every trader. However, it is one of the most critical points to your success. You should back test your system. Back testing a system involves applying the rules and conditions of the best trading systems to historical data. With back testing you can determine how profitable your system can be, and predict its win/loss ratio. These numbers will not be 100% accurate, as price movements in the past are never repeated perfectly. However, you can