There is a risk of loss in trading futures. An important way to minimize your risk is to treat your trading as a business. Just as a business plan is important to a successful business, a futures trading system is a vital part of your futures trading success.
I had a great uncle who was a stockbroker years and years ago. He always used to say that there were some brokers who just “knew” what to buy and sell and when to do it. They had hunches and followed them and some of them had very good reputations as brokers.
Following hunches and calling it a futures trading system is not exactly what we are talking about here. Following hunches is not any kind of futures trading system. It is merely speculation. Using a futures trading system will be more effective than speculation over time.
What is a futures trading system? It is simply a systematic method you use to do your futures trading–it’s a “system.” In other words, your futures trading system defines your approach to trading futures.
Your futures trading system should be your methodology that you write down in detail on paper. Your system should deal with all aspects of making a trade, including entry and exit conditions and money management.
Your futures trading system should leave no room for speculation or human judgment. This is one of the best reasons to have a futures trading system. Taking human emotion out of your trading equation will serve you well.
Your futures trading system should have precise details about what to do in every circumstance you can think of. It will be your guide as to what to do and when to do it based on the guidelines you have set up.
Without a futures trading system, some experienced traders believe you are doomed to fail at futures trading. With a good futures trading system in place that you have tried and tested to your satisfaction, you can go far. Of course, once you go live with your futures trading system and start making live trades, the money management aspect of your futures trading system must come to the fore. Over-trading has been the downfall of many a trader. 해외선물
Knowing when to take a loss without making emotional decisions based on fear and/or greed is something a futures trading system can do for you. With tried and tested guidelines in place, making decisions based on facts rather than emotions is perhaps the most important benefit of implementing a futures trading system. Of course, no futures trading system will give you winning trades every time. But a good futures trading system in place and adhered to will, over time, prove its worth.