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All successful traders have their own trading system with positive return expectations and can execute it consistently.
Whether you are trading stocks, futures, virtual currencies or even foreign exchange, there is only one way for you to make long-term stable profits: to consistently output a set of trading logic with positive return expectations in a long-term stable manner.
If you want to output your trading logic stably, the best way is to systematize it. Only by systematic trading can you output your trading logic efficiently, and ultimately you can achieve stable returns.
Most novices actually trade subjectively and emotionally. They do not have their own trading rules and place orders arbitrarily based on their sense of the market, which will result in losses.
How to build your own trading system?
A trading system is generally divided into three parts: an entry condition for trial and error, an exit condition for cutting losses and letting profits run, plus a money management condition that suits one's own risk preferences.
A trading system that suits you is one that polishes the details within these three parts to create a trading model that operates very smoothly and is neither humble nor arrogant. You should build your own trading sword based on your personality traits.
First, you need to see what kind of market you want to catch, and then establish entry rules, exit rules and capital management rules based on the market you want to catch.
What you need to do next is to wait. You enter when the entry rules are met, and you exit when the exit rules are met. Only trade in the market that belongs to you. Don’t trade in the market that is not yours, and don’t predict what the future market will be like. After entering the market, if you are wrong, stop loss, and if you are right, hold on. It is simple and clear.
Just treat yourself as a machine and execute your trading rules consistently. Only respect the current market price trend and take the trend as king. Do not look for certainty, push yourself to the extreme and overcome your own human nature.
Insist on keeping a light position and following the trend, cut losses, let profits run, and then manage your funds well so that you will not have a big retracement. In the end, all that is left is to execute consistently, and then patiently wait for your trading system to bring you profits.
Those who adopt systematic trading, keep light positions and follow the trend, and diversify their holdings into multiple varieties will never be number one in the trading rankings. They will always be at an above average level because they are pursuing low-risk, long-term stable profits rather than high-risk, short-term huge profits.
They treat trading as a lifelong career rather than gambling, and they will not go all in with a heavy bet. They will not become stars, but they will become eternal centenarians.
People who adopt this approach build a trading system by following the nature of the market. As long as the market does not fall, they will not fall. They will watch the stars rise and fall, and they will always stand firm.
