Hi...I'm new here. Could you elaborate on what you mean by a system? I.E., does a system have to be some sophisticated jargon loaded model? How simple can a system be? Can you give me a realistic simple example? (I don't mean like when the cat meows, buy; cat scratch, sell.) Thanks for your input.
What is a system. First you must answer the question: what kind of trader am I? Know thyself. 1. Time frame: daily -- one or multiple trades per day weekly monthly 2. Do you want to develop a mechanical or follow a discretionary method (or combination). The computer gives you buy and sell signals, or you look at and interpret charts, graphs, and follow the news. Those two questions should give you something to chew on for awhile. Finally, if you go to woodie's club, you will find an example of a system (see previous post).
It's better advice than bible !!! bitrend: "Buy this book Reminiscences of a Stock Operator. - Read it. You will have an idea how Wall Street works. - Make some trades. You will lose money. - Reread it. You will understand how Wall Street works. - Make some trades. You will break even or so-so. - Develop your own system. You will have confident. - Trade with your system. You will get my sincere wish for luck. - Come back and start argue with ET members. You will be known." Everyone must develop a system for trading. In my experience, I am in asian time zone.. I find it too difficult to concentrate in the electronic trading session (after US session) .. I cant keep scanning 15 mins, 1 hr, 2 hrs, 4 hrs MA, stochatics, RSI, MACD...and patterns .. my accuracy drops over time. However, by the time everybody exploit the automated solution.. the market condition will change.. the profitable algorithm derived from backtesting will no longer work..at that time you may only backtest few months.. qxr1011: "To expect that first 10 years you'll spend learning. How much money this learning process will take depends on you personal circumstances and abilities." I do feel that there are lots of books to read suddenly when I join trading.. many many ideas appear on my brain but it turns out that most ideas appeared in the market for long.. for exp, trading around figures is not feasible in the fx context. Also, I have a technique to shorten this cycle a lot. Always read the comments in amazon before reading any book. Check all the books with keywords like "hedge fund", "system trading", "forex", "day trading".. and those recommended by ET here... some are classics. Businessman: "Keep dreaming but dont give up your day job." This is hard advice for people in the US timezone. Therefore develop a mechanical day trading system so you can continue to work and trade. Mechanical systems have deep drawdowns but this doesnt matter as you have an alternative secure income. That's true.. but the progress to advance your knowledge is much slower when you are having a job ..however, I agree that it is risky to give it up... In a story I quoted in another thread.. I saw a guy can go from 1K to 1M.. but even with that growth rate.. that is 46.8% per month or 1.8% per day, you still need to work for at least half to one year before giving up .. because each half year can only make 10 times from your deposit. I dont know others but I only deposit one month of salary into the margins account as experiment. 10 months of salary is not enough for me .. but if it is 100 months after 1 yr.. yes.. you can quit then.
Try using the search feature before starting another thread about the same subject that 1000's of posters have already asked.