• In this lesson in our Forex course, we saw that it was better to create your own trading system instead of wasting time looking for an infallible trading system created by someone. A system that you have developed based on your personality and your profile as a trader, with whom you feel comfortable and trustworthy, after having tried and optimized. • Creating your own trading system is not impossible, nor is it so difficult. The main mistake of most traders is that they have little discipline to follow their rules and, as a result, lose money. • With your operating system, you must pursue two objectives: • You can identify trends as quickly as possible. • You can find ways to avoid false signals and losses. (Confirm the trend). If your system becomes profitable in a demo account, you should try to obtain a reasonable result of at least two months. This will give you an idea of how to work with your system when the market moves to a real business account. There are six steps to create your own trading system: • Find the time frame that really works for you. • Find the indicators that help you identify trends early. • Find indicators that help you confirm trends and avoid false signals. • Define the level of risk. • Define the inputs and outputs. • Write the rules of your operating system and always follow them. In the last article of the lesson, we will give you an example of what your own Forex trading system should look like. It is not that you follow the letter, but it can be useful to see what you need to define when creating yours, and it is also a good example of how important simplicity is to have a good system. You will see how a simple system will give you less headaches and will be much easier to follow and optimize.
If you operate without money management rules, put. You do not see a long-term return on your investment. Instead, he is only looking for immediate gains. Money management rules not only protect us, but also ensure that we invest very profitably in the future. If you don’t believe this and think that betting is the way to go, consider this example: people always go to Las Vegas to spend their money, hoping to win money quickly and easily; Many of these people really do. So how is it possible that casinos earn so much money when the people who come to them earn money? The answer is that, despite people who make money, casinos are still profitable because they make a lot of profits from people who do NOT make money. From here comes the term “the bank alwins”.