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Why use a Trading System

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About Forex Trading
 
Most "human" traders, whether they are amateurs or professionals, run the risk of rising emotions. For some investors its ego, greed or wishful thinking that undermines effectiveness. For others its denial, fear or panic that shakes confidence. When it comes to investing in complex futures markets, human emotion can cause investors to be inconsistent and undisciplined. The commonly held belief that 9 out of 10 futures traders lose money can be partially explained as a consequence of human emotion.

System Discipline
Futures Trading Systems are the "machine" antidote to human emotionality. A computer-based trading system generates instructions based solely on programmed rules. These system rules determine timing for market entry and exit, profit targets, and protective stops to limit losses. A system's binary code is emotionless. The system does not believe, feel, worry or obsess over a trade. It simply transacts unemotionally. System execution is objective, disciplined, quantitative and scientific.

During the past decade the principals of Trade Center, Inc. have had the opportunity to work with and observe the trading habits and strategies of many clients. Based on our experience with investors, we have identified some of the characteristics we believe differentiate their methods of trade. While not true of all investors, the following illustrates some of the differences we have noticed between an investor who uses a trading system and an investor who does not.

The Non-System Investor

Immediate gratification
Changes mind mid-stream
Undercapitalizes trades
Over commits to single market
Unable to monitor all opportunities
Tries to predict/outsmart the markets

The System Investor

Follows system's long-term strategy
Disciplined implementation
Account size predetermined to fit system
Diversified into multiple markets
Constant observation global markets
Assumes favorable ratio of gains over losses

  
FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS. CLICK HERE FOR A FULL RISK DISCLOSURE