One of the advantages we have trading Forex on the internet is the access to so many different trading systems and so many different indicators. There are over 1000 indicators to choose from and there are more systems than there are traders! We have access to many of these systems both freely and commercially. What a great advantage we have as traders!
Or is it an advantage?
What if we lived in a world where, if we wanted to trade the Forex market, we were given only 1 system? This system was worked on only 1 timeframe and included 2 indicators and a couple of moving averages. We learned about support and resistance and trend lines and that was it! No choice to alternate indicators, averages or timeframes. How awful would that be, we would be a total disadvantage.
Or would we?
This might surprise you, but I believe that if we as traders were only able to use a single trading system, would be so much better off. You would see more Forex millionaires, exponentially more year after year. We would be forced to learn the trading system inside and out. We would become familiar with its win loss ratio and how many consecutive losses it regularly sees. We would understand that if we continued trading after a loss that the likelihood of a winner is very strong. We would come to trust the system implicitly.
After a length of time trading the same system, we would come to an understanding of how we work as traders. We would have to come to grips with our emotions and accept our weaknesses. We would have to get past out limiting behaviours and learn how to trade.
We would quickly learn the win loss ratios and therefore have our money management skills honed to a tee. Our risk would be watched and we would rarely make stupid emotional mistakes. Trading only one system would make us the best traders we could be.
The options we have are what kill us as traders. There is too much in the way of system hopping. Once we lose a trade or two, we are off to the next system in hope that it is a better system. We explore as many indicators we can find looking for the “best” indicator out there. We spend so much time searching for the better system because of our downfalls as individuals. We have plenty of opportunity to blame the system we are trading that we never get to learn how to trade.
When you come across a trading system you like, stick to it. You won’t find the best system ever, but what you will find the best trader ever. Sticking to a good system through the thick and the thin is how you will succeed as a trader. You will know everything you need to know in order to consistently make money in the markets. You can leave all those “system hoppers” in the dust and make you trading dreams a reality.
Best regards
Russ
