Should I build my own Stock trading system or copy an existing one?
Every trader who wants to make money and generate trading profits in the stock market needs one. A good strategy can increase the chances of winning because it sets entry points, exit points, and risk management rules. You, therefore, need to spend some time looking for the best strategy.
You can find suitable Systems on the internet. You might be able to come across free systems but many others are sold at good prices. It’s easy to see why expert Systems are costly. They are the tools that can help investors make well beyond the initial cost of a system. Despite the high price tags though, stock trading systems that are for sale are often ideal to use because their cost is a warranty of sorts. You can reasonably expect high system quality that is the result of research.
The mere fact that people buy existing Systems such as the Bollinger or The 50 and 200 Day Moving Average stock trading system implies that there may be an intention to simply copy off a successful method.
The question is whether copying is really a good step to take or not.
Many trading experts who make real money recommend coming up with custom Systems. The plain and simple reason behind this is individual differences. No two people are exactly the same so no Strategy can work well for every single individual. A system, for example, takes charge of managing losses. A stock trading system is made based specifically on the creator’s loss tolerance. His unique stock trading system may therefore not take into consideration your unique levels of tolerance.
Having your own Strategy means you will always be at ease with the outcome of any trade regardless of where it turns. The fact stands though that creating your own method is time-consuming and requires a lot of effort. Aside from actual creation, you need to run it through back testing. The whole process also, therefore, requires some technical skill, attention to detail and a great amount of patience.
You have an option if making stock trading system is not what you might want to get into. You can simply receive another person’s framework yet restrictedly. It’s never a smart thought to actualize a framework straight out of the container. What you can do is to deliberately investigate the components of the Strategy you wish to utilize. You need to ensure that everything in it fits your style, inclination, and identity. In the event that there are a few focuses that don’t exactly fit, you should endeavor to change them as indicated by what will be perfect for you.
Since there are many Systems available to you, it makes sense to perform a preliminary evaluation of your options. Forums for market investments may be good places to look for people who have insights to offer on Systems that they adopt. As a safety precaution, it would also be a good idea to pick paid packages that offer support or money back guarantees.