Choosing a trading system: buy or create?
The necessity of having a trading system when working in financial markets is an axiom that does not require any proof. Every successful trader has his/her own unique Forex trading system which they use as a reliable tool for gaining regular profits on the currency market. It is also obvious that all those who "dropped out of the game" either did not use an elaborate trading system or did not use it at all, relying on blind luck.
The first question every trader should ask himself/herself before entering the market is: Should I master a trading system of this or that successful trader ("guru") or develop my own model? The answer to this question is not straightforward.
In favor of the second option, it is worth saying that a proven Forex trading system - despite the fact that it can be broken down into its component parts, like any simple mechanism - is still the work of another person and in its essence reflects the thoughts and psychology of its author.
Secondly, your investment ability at the initial stage can differ significantly from the capital that was involved in the success of the studied trading system - and it means that you will have a completely different risk accounting than the author of this system.
Finally, thirdly, it is worth taking into account an important psychological factor. Although a trader's main virtue is known to be a cool head, each player uses this head in accordance with his or her degree of individual vitality: someone is aggressive in market, making fast deals, and someone is cautious, relying on the market conditions within long enough time intervals.
But! How long will it take Forex beginners to create their own product from scratch? And it should be a profitable strategy for beginners, which is guaranteed to bring a certain income in trading. Does an adept have enough knowledge for this creative work? One can spend years developing new solutions usually discovered by others and end up in a creative dead end. How do you know if the author is heading in the right direction or if his work has already been tried and even rejected by others?
In my opinion, it is better still to use someone else's, but a proven track record. And it should not be a purely technical solution to the problem of obtaining a ready-made trading system. It will be much more effective to find the author of the system and receive training from him. In this case the beginner will understand the process algorithm much faster and will build up trading skills with minimal risk of losses under the control of a more experienced colleague.
Nowadays such opportunities are available to a beginner. Suffice it to recall the well-known trading systems such as "Extra", "Three Indians", "Vegas Wave" and others, whose authors conduct specialized training and give excellent material, which is called from "A" to "Z". In addition, traders, having completed the training course, continue communicating with the developers of methods on specialized forums and chats. And this, you must agree, is difficult to overestimate, especially in the period of trader's development.
I have collected interesting, reliable trading systems on a special page, where you can read descriptions of them and choose a solution according to your personal preferences.
And only after the trader has received such an education, he can decide whether to focus on developing his own Forex trading system on the basis of the studied material or to stick to a well-tested method.
In any case, it is necessary to remember that the main points of the system should be such parameters as: choice of filters reacting to market signals, choice of stop-signal placing method, formation of strict conditions for market entry and no less strict criteria for deal exiting.