It’s not unusual for trading prospects to ask me to if I could teach them “a simple e-mini trading system they can learn quickly.” If your goal is to master trading by purchasing a canned e-mini trading system that has simple indicators and churns out money like an ATM you will be disappointed in this article. The point of this short discussion is to contrast simple trading systems and complex trading systems and hopefully find a middle point that satisfies the need for precise trading. It is my belief that trading is not a simple process and some level of sophistication (complexity) is essential. That statement does not imply that you need a super-computer to succeed, but you do need to have read more than a single do-it-yourself trading book and slap up a few of the recommended lagging oscillator and expect to prosper.Through experience every successful trader finds a methodology that isolates and measures variables of the trader’s choosing to identify potential profitable trades. A written plan is usually composed and specific guidelines are recorded for maximizing the trading strategy’s earning potential. As an aside, most of the great traders I have worked with were terrific with price action.I was browsing on the trading forums recently and came across a thread entitled, “How many e-mini trading systems have you purchased?” I was stupefied by the length of the thread and its contents. Most of the participants had purchased between 5 and 10 systems and paid upwards of $2,000, or more, for a trading system that they now had discarded. Most of the usual lagging indicator trading systems I recognized and they were the ones that use a couple of moving averages and a couple of generic indicators and promised success at an unattainably high percentage rate. A few of the participants disclosed their total expenditure on trading systems and those numbers ranged from $5,000 to $40,000.I haven’t found a system described above that works in varying market conditions. They all seem to work in a trending market, but who needs an e-mini trading system in a strong trend? Again, shortcuts in learning to trade usually result in disappointment. If you put the time in and learn to trade an effective trading strategy (and can control your emotions to any degree) you stand a much better chance of succeeding than any simple lagging indicator may provide.On the other hand, I have encountered systems that had so many indicators and rules that I was left bewildered. Most of these systems I encountered at the institutional trading level, never at the retail level. I suppose that with intensive study and some years of experience I could have succeeded. But is it really worth all the work to learn just one system? I don’t think so.Finding the balance of simplicity and complexity in your trading system is a balancing act that comes to fruition through experience and education.. I firmly believe that learning a specific rules-based mechanical trading system is futile. On the other hand, mastering a personal trading strategy is essential.Why not start with trend lines and support and resistance? Add an order flow program, volume indicator, an understanding of price action, and a momentum indicator and you have the beginnings of a trading system. As a trader, you have to develop a methodology that isolates and measures the important variables in your trading strategy and correlate the convergence between trading system components. If you can implement an effective trading strategy with the “old school” tools of trading previously mentioned you will have a coherent trading strategy that works in varying market. It will take a good deal of practice, experience, and chart time to perfect your trading strategy.In summary, if your mindset is to purchase a canned e-mini trading system in order to short-cut learning the fundamentals of trading may result in trading losses. Trading is about thinking and executing based upon price action, volume, order flow and support and resistance; you may even have some variables that work better for you; just make sure you can isolate and measure any variable. Finding a healthy coexistence between simplicity and complexity is the road to success.
Do You Sacrifice Profits In Search Of A Simple, Mechanical E-Mini Trading System?
Mar 31 2022 Published by admin under Uncategorized
Comments are off for this post
Give a Chance to Binary Options Trading This Season
Mar 24 2022 Published by admin under Uncategorized
Binary options trading has a lot of rumors and controversy around it, but it is, in fact an easier and enjoyable form of trading. Especially if a person is new to the world of trading, as this is easy to understand. In binary options trading, a trader bets on stock and either earns money if it matches within a certain amount of time or loses it. That is why it’s a risky but equally exciting way of earning money. There are just two options of ‘yes’ or ‘no,’ hence the name binary.
If the stock price does not fall on the correct side of the strike price within the expired time and date, then the trader loses the money. But if it does fall on the correct side, the trader gets a profit.
For example, if a stock is trading at $60, the binary option has a strike price of $65 and expires at 12 pm the next day. The trader can buy the option for $50. If, after the expired time, the money goes above $65, say at $100, then the trader gets a profit of $50 (100 – 50). But if the money falls below $65, that is, it’s out of money, then the trader suffers a loss. Either way, it is good for practicing day trading as it helps in building an accurate intuition.
Another important part of binary options trading can ensure that the trader is not getting into any scam sites. This is because there have been cases of the trading system being rigged and the company profiting from all the activities. That is why a binary options broker is essential for the trading to be legit. Brokers help manage the amount, and they also do not take any commission for a trade that ended in a draw. Brokers are necessary for any trading because whatever profit the trader earns from trading will be their own wealth. There are no cuts from the amount, except for the commission the broker gets. But the majority of the amount goes to the individual.
Here are some of the benefits of having a brokerage account and a stockbroker:
· Trade with many companies – The person can place their options on any stocks that the broker has access to. And this may be every company listed in the New York stock exchange or Nasdaq stock market.
· Individual and independent trading – With brokers, an individual has direct access to the foreign exchange in stocks. That gives the independence to invest in international stocks and decide the stock selection.
· One-time money management – Many brokers understand the importance of other investments like bonds, mutual funds, and bank account products. Hence the broker lets the trader get a single environment that can take care of all this, letting the person have a simplified path to money management and not have accounts spread out for different investments.
· Customer service – Brokers also give financial advice that goes beyond finance or trading. Every broker has a different form of service, but working with a broker will also help get different resources for better managing the finances.
An ideal broker has many features that can be attractive depending on the facilities. Like the forex brokers. We offer an attractive number of options for both binary trading and day trading. The Forex education can also help in getting you educated on the basics of trading. And the binary options brokers can help you get the most profit from the trading. Do check us out. We will not disappoint!
Comments are off for this post