Forex Trading System

I personally started trading the stock market when I was 13 years old. Of course, it was only on paper and we didn’t have the internet which has simulated stock trading. Who would let a young teenager play the market with real money? Twenty years later, I got my training and was a licensed New York Stock Exchange broker for real. I will now share with you some of what I have learned about stock trading and stock trading systems.

Everybody who studies the market closely will eventually think that they have found the secret of all stock trading systems whether it’s a stock trading system, options trading system or online forex trading broker system. That includes beginners as well as the pros. However, when you say the phrase “stock trading systems” the immediate thought is that you are talking about some way to forecast the future. That is true, but only partially.

Forecasting trading systems try to predict what will happen tomorrow based on what happened yesterday. There are those that think this works and those that think that it doesn’t.  For example, for two decades, if the AFL won the Superbowl, the market ended lower for the year. If the NFL won, the market went up. Had you followed that as the best of all trading systems, you would have made money. Other stock trading systems that are created to forecast, rely on phases of the moon, even the weather. Every kind of market has their own gurus who have their own trading systems.  For example those that are in the forex market have their own forex trading system and those that are in commodities have their own commodity trading system.  Did you know that when the weather is bright and sunny in New York City, the stock market rises more often than when the weather is cloudy and rainy? That is a fact that you can take to the bank. Nevertheless, is this idea of forecasting the market really one of the stock trading systems that we should be interested in?  I’m sure that some probably think that it is.

My experience tells me that when we look for a trading system, we should be looking for a way to profit after we are in the market and not worry so much about forecasting the future direction of the market. Never are any of the stock trading systems that try to forecast the market right 100% of the time and many times they’re not even close to it. However, what if I told you that you could make money in the stock market even if you are wrong about the direction of the market most of the time? Now that would be one of the stock trading systems worth knowing.

Suppose you were able to devise two systems - one for when the market is going up and another for when the market is going down. This means that when you make money, you make a lot and when you lose money, you just lose a little. That would be the greatest trading system that you could ever find.

When you look at the computerized trading programs and they tell you they have a variety of stock trading systems that they are using, always ask if the program gives sound advice to keep from losing when the stock market is going down. This same approach should also be taken with human stock market advisers when they tell you about their stock trading systems. Of course these rules also apply to other trading systems such as forex, and commodities trading systems.