Sunday, September 13, 2009

Stock trading systems

Many traders have spent lots of time to search for the perfect stock trading systems. Actually, as many of them finally realized there are no perfect trading systems in the stock world. Any trading systems will have losing trades. The key is that the good trading systems not only generate more winning trades than losing trads but also the gain per winning trade is much bigger than the loss per losing trade. No matter the tradng system is mechanical system or not, it's for short term trading or for intermediate term trading, the bottom line is that you have to use stop for any trades.
Some trading systems perform better in bull market than bear markets. Some trading sytems perform better in trending market than in trendless market. You may need to have different trading systems to deal with different market environment/phases to maximize trading performance.
Once you find good trading sytem which make good profit consistantly and fit for your trading style, you'd better stick with them, insteading of keeping looking for the better ones.

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