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Some Trading Systems Are Simple.

The following article snippets contain well found wisdom within a basic ideology. I would, however, beg to differ with the comment made within the last paragraph of Kent Pinkerton's article in which the author states that trading systems are complex.

They do not have to be!

There is no requirement for an understanding of technical analysis in some systems and the parameters for a system of trading can be quite simple.


Here is part of the article by Ken Pinkerton on Stock Trading Systems.

You cant make money in the market unless you take a serious approach to trading. To achieve substantial returns on a regular basis, you have to choose a stock trading system that has passed the test of time.

First, let us find out what a trading system means. It is a group of specific parameters that determine entry and exit points for a given equity.

In an effective system, the head rules over the heart. It throws all emotion out of trading. Investors, who fail to cope with losses, often second-guess their decisions and end up losers. If a pre-developed system is followed, system traders need not make any decision as the system is not empirical but automated. Reducing such human inefficiencies yield more profits.

Trading systems are, however, complex. They require a good understanding of technical analysis, the ability to make empirical decisions, and a solid knowledge of how parameters work.

Stock Trading provides detailed information on Stock Trading, Online Stock Trading, Option Stock Trading, Stock Trading Systems and more. Stock Trading is affliated with Swing Stock Trading.

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This page contains a single entry from the blog posted on March 5, 2007 1:29 AM.

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