A Trading System is a method of trading where buy/sell signal are defined as a result of technical analysis. Every investor has his own market Trading System (Trading Strategy) when it comes to making money in the stock market. As a rule a trading system is build on the experience in technical analysis. It is not enough to set trading rules that would tell you when to buy and when to sell. A successful (in the meaning profitable) trading system require constant maintenance and monitoring. Stock market is in the constant change and if you want your system to be profitable in a long run, you have to analyze market constantly and time on time adjust your trading system to new stock market conditions.
Even technical analysis is not an exact science, it is one of the most important factors in majority of trading system. it attempts to use past stock price and volume data to predict future price direction. With high variety of technical indicators the number of possible trading systems combinations practically runs into infinity. It is up to each individual trader to select the indicators combination and set specific system's rules that will fit his or her specific trading needs and personal risk tolerance.
A Trading System based on real-time charts is one of the best ways to control risk. It's not the only way, but it's one strategy that's followed by a lot of investors.
A Trading System is a method of trading where buy/sell signal are defined as a result of technical analysis. Every investor has his own market Trading System (Trading Strategy) when it comes to making money in the stock market.
Technical analysis is not an exact science; it is more of an art and takes a considerable amount of experience. Not all studies work the same for every instrument traded. One study may give excellent buy and sell signals while another may not work for you at all. It's up to each individual trader to find those that will fit his or her specific needs.
A Trading System based on real-time charts is one of the best ways to control risk. It's not the only way, but its one strategy that's followed by a lot of investors.
Basically a trading system uses trading formulas and technical indicators to implement them into an automatically executed system. Advanced computer programming techniques, online trading platforms, electronic access to stock market data, online brokerage services enable traders using a trading system to build automated trading systems.
Institutional and retail traders, investment companies and fund managers use trading systems to eliminate the emotional factor from the process of making a trading decision.. A trading system can automate all or part of the investment portfolio, be adjusted for either conservative or aggressive trading styles and be set for long- mid- or short-term trading.
In general a trading system is a set of rules that has to be executed in the certain market conditions that are defined by the technical indicators used in this trading system. The trading system parameters can be based on applying the historical analysis to real-time stock market.
At the current moment there are numerous programming languages, trading system development platforms and already developed trading systems that could be used by traders to create their own customized trading systems that fit their personal trading styles and risk tolerance.
General Rules for Trading Systems