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I trade stocks by using mechanical trading systems - systems that I have designed over the past few years. But what exactly is a trading system?
In general terms, a definition of “System” can be found at www.thefreedictionary.com:
"1. A group of interacting, interrelated, or interdependent elements forming a complex whole."
We live and work with systems every day. Systems provide us a proven method or procedure to carry out a task from start to finish.
In terms of stock trading, you can find countless sources that will supply daily stock picks. And it’s easy to buy a stock. Just get your daily picks, buy the stocks, and hope they go up. But buying a stock is just the beginning. How many shares should you buy? When should you sell? How many stocks should you own at once? And finally, how much money can you expect to make with those stock picks?
The hardest part of stock trading is not the buying. It’s the selling. It’s the money management, or risk management. It's the confidence of knowing that your stock trading will make you good money over time. A trading system is a set of rules comprising a method of buying, selling, and managing your stocks. The systems here at Trade4CashPro give you all that. They tell you what stocks they are buying, when they are selling, and how many stocks they hold at any one time. And they show you how much money they've made over the past few years. A service that only gives you stock picks, but does not tell you when to sell them, or how much money you should risk on each stock, is not supplying you with a complete trading system.
A trading system is a complete set of trading components that tells you:
- What to buy
- When to buy it
- How many shares to buy
- When to sell it
- How many stocks to own
All of the systems at Trade4CashPro have been thoroughly tested, so you know how they have typically performed in the past. And I have used them for my own trading, so I know first-hand how they behave, and how much money they return. Of course, past performance is no guarantee of future results, but it makes more sense using a system that you know works, vs. going into your stock trading blindly. It’s very difficult, if not impossible, to make a great chocolate cake from scratch without a recipe. A recipe is a system.
Why use Systems?Read On
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