forex money making system/strategy #1 (forex money making system/strategy #1)
This is a simple strategy and all its rules are clearly written. Please follow the rules on your demo account if they make you money before following them on your real account. Never forget good money management rules
I didn't create these rules - some super smart people did and they made a lot of money with these strategies, I'm just sharing them here for those who don't know.
Please bookmark this thread, I've lost a lot of amazing threads just because I forgot to bookmark them.
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It doesn't matter the rules you don't follow
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Most successful traders use mechanical trading systems. This is no coincidence.
A good mechanical trading system can automate the entire trading process.
This system provides answers to every decision a trader has to make in trading. This system makes it easier for traders to trade consistently because there is a set of rules that specifically define what should be done. The mechanics of trading do not depend on the trader's judgment.
If you know that your system can make money in the long run, it will be easier to take signals and trade based on the system during periods of losses. If you rely on your own judgment during the trading process, you may find that you should be brave when you should be bold and cautious when you should be.
If you have an effective mechanical trading system and you follow it consistently,
Despite the inner emotional struggles that may arise, your trading will remain consistent from a string of losses to a huge profit. Confidence, consistency, and the discipline provided by a thoroughly tested mechanical system are the keys to the success of many of the most profitable traders.
------------------------------------------
Parts of a complete system
A complete trading system covers every decision required for successful trading:
Market - what to buy or sell
Position size - how much to buy or sell
Entries - When to Buy or Sell
Stops - when to exit a losing position
Exit - when to exit a winning position
Tactics - How to Buy or Sell
market
The first decision is what to buy or sell, or essentially which markets to trade on. If you trade too few markets, you greatly reduce your chances of riding a trend. At the same time, you don’t want to trade a market that has too little volume, or that isn’t trending very well.
Position Size – How Much to Buy or Sell The decision about how much to buy or sell is absolutely fundamental, but often glossed over or mishandled by most traders.
How much you buy or sell affects diversification and money management.
Diversification is the attempt to spread risk across multiple instruments and increase the chance of profiting by increasing the chances of catching a successful trade. Proper diversification requires different instruments making similar, if not identical, bets on many aspects. Money management is really about controlling risk by not controlling risk and betting so much that you blow all your money before a good trend hits.
How much to buy or sell is one of the most important aspects of trading. Most novice traders take too much risk on each trade and greatly increase their chances of success, even if they have other effective ways of trading.
Entries – When to Buy or Sell The decision of when to buy or sell is often called an entry decision. Automated systems generate entry signals that define the exact price and market conditions to enter the market, whether by buying or selling.
Stopping Points – When to Exit Losing Positions Traders who do not cut their losses will not be successful in the long run. The most important thing about minimizing losses is to predetermine the profit point you will receive before you exit the position.
Exits – When to Exit a Winning Position Many “trading systems” sold as complete trading systems do not specifically address exiting from winning positions. However, the question of when to move away from a winning position is critical to the profitability of the system. Any trading system that does not support the problem of exiting winning positions is not a complete trading system.
Tactics – How to Buy or Sell Once a signal is generated, it becomes important to consider tactics regarding its mechanics. Execution becomes important. This is especially true for larger accounts, where the exit of an entered position could result in significant adverse price movements, or market impact.
----------------------------
Using a mechanical system is the best way to consistently make money trading. If you know that your system will make money in the long run, it will be easier to catch the signals and follow the system during losses. If you rely on your own judgment,
During the trading process you may find that you feel fearful when you should be brave,
Or be brave when you should be afraid.
If you have a profitable mechanical trading system, and you follow it religiously, your trading will be profitable, and the system will help you survive the emotional hardships that inevitably result from long-term losses or huge profits.
----------------------------------
Please tell us your thoughts or results about this system/strategy in the thread - off-topic posters or complainers will be banned from the thread. Some of the included indicators/etc will help you test/apply the strategy.
I didn't create these rules - some super smart people did and they made a lot of money with these strategies, I'm just sharing them here for those who don't know.
Please bookmark this thread, I've lost a lot of amazing threads just because I forgot to bookmark them.
----------------------------------
It doesn't matter the rules you don't follow
----------------------------------
Most successful traders use mechanical trading systems. This is no coincidence.
A good mechanical trading system can automate the entire trading process.
This system provides answers to every decision a trader has to make in trading. This system makes it easier for traders to trade consistently because there is a set of rules that specifically define what should be done. The mechanics of trading do not depend on the trader's judgment.
If you know that your system can make money in the long run, it will be easier to take signals and trade based on the system during periods of losses. If you rely on your own judgment during the trading process, you may find that you should be brave when you should be bold and cautious when you should be.
If you have an effective mechanical trading system and you follow it consistently,
Despite the inner emotional struggles that may arise, your trading will remain consistent from a string of losses to a huge profit. Confidence, consistency, and the discipline provided by a thoroughly tested mechanical system are the keys to the success of many of the most profitable traders.
------------------------------------------
Parts of a complete system
A complete trading system covers every decision required for successful trading:
Market - what to buy or sell
Position size - how much to buy or sell
Entries - When to Buy or Sell
Stops - when to exit a losing position
Exit - when to exit a winning position
Tactics - How to Buy or Sell
market
The first decision is what to buy or sell, or essentially which markets to trade on. If you trade too few markets, you greatly reduce your chances of riding a trend. At the same time, you don’t want to trade a market that has too little volume, or that isn’t trending very well.
Position Size – How Much to Buy or Sell The decision about how much to buy or sell is absolutely fundamental, but often glossed over or mishandled by most traders.
How much you buy or sell affects diversification and money management.
Diversification is the attempt to spread risk across multiple instruments and increase the chance of profiting by increasing the chances of catching a successful trade. Proper diversification requires different instruments making similar, if not identical, bets on many aspects. Money management is really about controlling risk by not controlling risk and betting so much that you blow all your money before a good trend hits.
How much to buy or sell is one of the most important aspects of trading. Most novice traders take too much risk on each trade and greatly increase their chances of success, even if they have other effective ways of trading.
Entries – When to Buy or Sell The decision of when to buy or sell is often called an entry decision. Automated systems generate entry signals that define the exact price and market conditions to enter the market, whether by buying or selling.
Stopping Points – When to Exit Losing Positions Traders who do not cut their losses will not be successful in the long run. The most important thing about minimizing losses is to predetermine the profit point you will receive before you exit the position.
Exits – When to Exit a Winning Position Many “trading systems” sold as complete trading systems do not specifically address exiting from winning positions. However, the question of when to move away from a winning position is critical to the profitability of the system. Any trading system that does not support the problem of exiting winning positions is not a complete trading system.
Tactics – How to Buy or Sell Once a signal is generated, it becomes important to consider tactics regarding its mechanics. Execution becomes important. This is especially true for larger accounts, where the exit of an entered position could result in significant adverse price movements, or market impact.
----------------------------
Using a mechanical system is the best way to consistently make money trading. If you know that your system will make money in the long run, it will be easier to catch the signals and follow the system during losses. If you rely on your own judgment,
During the trading process you may find that you feel fearful when you should be brave,
Or be brave when you should be afraid.
If you have a profitable mechanical trading system, and you follow it religiously, your trading will be profitable, and the system will help you survive the emotional hardships that inevitably result from long-term losses or huge profits.
----------------------------------
Please tell us your thoughts or results about this system/strategy in the thread - off-topic posters or complainers will be banned from the thread. Some of the included indicators/etc will help you test/apply the strategy.
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