The Advantages Of Trading With A Mechanical Torque Trading System
The majority of successful Torque traders use a mechanical and predetermined Torque trading system. This is not accidental.
A good mechanical trading system automates the whole process of trading. It provides answers for all of the decisions that a Torque trader must make while trading takes place. The system makes it easier for a trader to trade in a consistent manner because there are rules that explicitly describe what needs to be done every step of the way. Trading is not up to the judgment of the trader; not while trading in any case.
If your trading system was thoroughly back-tested and you know that your system makes money over the long run than taking signals and trading precisely according to the system is really easy; even during periods of losses. Becoming a disciplined Torque trader, which is a difficult task for many, becomes a lot easier as well.
When a trader relies solely on his own judgment while trading, he may find himself fearful just when he should be courageous and daring when he should be cautious. Our powerful mind is designed by nature to alert / protect us of dangers; unfortunately this behaviour is many times counterproductive when it comes to trading currencies. Emotions like fear, hope and greed can sometimes cause us to see things that are not really there.
When one uses a mechanical trading system that works, and he follows it over and over again, his trading will be steadfast despite the emotional struggles that might appear from several losses or profits.
The reliability and discipline that a trader gets as a result of carefully following a tested mechanical trading system is the key to many of the best and most successful Torque traders.
A mechanical trading system should cover every aspect of trading. It should leave no variable or decision unanswered. All of the decisions and questions that might come up while live trading is in process should be addressed before actual trading ever takes place.
A complete Torque trading system should include the following:
- the size of the position; it should not be random, it should be strategic and based on one's overall goals and trading approach.
- where should entries take place? What constitutes an entry? What conditions do not permit an entry to take place?
- Stops; when a certain price is reached, the trader knows that the reasons for entering the position are invalid and therefore he should get out. Also referred to as stop loss.
- An exit strategy; once again, it should not be random but strategically constructed.
In summary, the first step in becoming a successful Torque trader is to design a detailed plan - a complete mechanical Torque trading system. The next step is to thoroughly back tests it and prove its profitability over time. After that, the only obstacle remaining should be one's ability to be disciplined and unwaveringly follow it.
I am an active and profitable Torque trader. I am also a personal Torque coach.
Being a trading coach is a responsibility that I gladly accept, watching students 'get it' is both a pleasure and a challenge that I enjoy very much.
A Torque trading system or strategy is a set of mechanically formulated rules set out in writing on how to enter and exit trades in the Torque market.
There are thousands of systems available on the Internet for trading financial markets. I feel that the best way for you to find an appropriate system to trade is to look at your personality. I know this is not what you expected to hear. By finding a system that matches your personality you will be more inclined to enjoy the experience and putt the effort and time in that is required to become successful. For example do like to do things quickly, if so a shorter time frame chart would suit. If you would like to only check your trades once a day then you require a daily or weekly chart and system to suit. There are many combinations and systems to trade, please think about how you would like to trade before choosing a system.
Some of the common trading systems, scalper where the trader is trying to take a profit of between one to five pips in a very short time frame. Day trading where all positions are closed at the end of day. Swing trader, positions are held until your profit target is achieved and many more.