Knowing the Causes of a Trading Crisis System

There are still many traders who think that a profitable and consistent trading system is very difficult to set up. Actually, in compiling a trading system, it does not need to be complicated, because the majority of traders who end up losing in trading are not due to a bad trading system, but are caused by emotions and an undisciplined attitude towards the rules that have been determined. In trading, if emotions take control, the trader will surely fail.

Maybe there are some traders who are still looking for a trading system so they can profit consistently. So eager is the trader to learn, that countless trading systems have been tried. Worse yet, all of that is done directly with real money, without trying it on a demo account first. Even if a trader learns on a demo account, traders want to immediately step into a real account with the reason that they want to quickly enjoy abundant profits. But what happened was the opposite. The money and capital he had deposited at the broker vanished in an instant, crushed by the viciousness of the market.

The most important thing in a trading system is that traders must be consistent with the trading system they already have, including using the trader's chart period. If the trader opens a position with the H1 period, make sure the trader closes the position also with the same period, because if it is different, it can be misinterpreted. Get rid of the habit of looking at or peeking at different chart periods, because more or less consistent traders will be affected.

After having a system setting that is in accordance with the character and has been tested, traders should not feel anxious as long as they are still obedient to the rules. It is undeniable that there are times of profit scarcity where traders may be attracted to breaking the rules. However, any violation of the rules in forex trading will have a very bad impact. In a situation like this, come back to remind yourself to keep using the trading system that has been painstakingly built. If in the future there is a desire to find a new system again, then do it with the same process as searching for a previous trading system.

In addition to the causes of the trading crisis system described above. Below are the main reasons that lead to failed trades:

• Wrong place of capital
• Lack of discipline and no trading plan
• Not studying the market
• Improper analysis/interpretation
• Pursuing the market (entering a position even though the criteria do not meet)
• Do not want to accept losses (hold position without using stop loss)

   

 

Steps To Set Up a Trader's System

Creating a trading system may not be too difficult and also not long. The old thing is to test it and make improvements so that the trading system is reliable and suitable for traders. To build a good trading system does take patience, it's not enough just a month or two months. However, if the system has been built and running well, your patience and perseverance will pay off sweetly. Following are the steps that traders need to build a trading system:

• Look for indicators to identify trends
• Look for indicators that can confirm the trend.
• Determine the risks you are ready to take.
• Determine when you enter and exit.
• Write down the system you use and put it into practice.
• Timeframe 

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