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A trading system - if you look up on web - its hyped-up - everybody talks about in some sort of a mystic language - some spiritual path you need to follow and some even call it "the ultimate solution" - in reality - It anything but.
Trading system if I may draw a parellel is like "learning to drive on the road and sharing the road with other drivers"
There two steps in the above process:- Learn to drive
- Learn to share the road
You need to know critical elements of a car that you are going to be using - you don't need to know the function of an engine - however its wise to always know whether its a 2-cyclinder or 4-cylinder etc..
Let's say its a 4-cyclinder like gbp/usd pair - what it means is that it consumes more gas (larger spread than eur/usd) and but also has power (average-daily-range of this pair (120+ pips) is almost double that of eur/usd which is only 75 pips).
That could mean two things - you will spend a little more on gas (spreads) and added power to the engine - is a double edged sword - can take you to your desired destination (if you know how to navigate well) fast or you could crash the car into a tree and get seriously hurt (lose all your money sooner than you think).
So first learn how to drive before you step on that gas.
Driving part is easy - atleast you follow these rules when doing the DMV test.
- Get into the car - fasten your belt
- Make sure your hazard lights are working
- Your rare-view mirrors are in position
- Turn on the ignition
- start driving (or in this case - let the trade run)
Let see each one step-by-step:
| Forex lessons in Creating your trading system |
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