Stock Trading Systems

Stock Trading Systems try to predict what will happen in the future based on what happened yesterday

When you look at the computerized trading programs that tell you they have a number of stock market trading systems that they are using, always question if the program gives sound advice to keep from losing when the stock market goes down. The same approach should also be taken with human stock market advisers who tell you about their stock trading system.

I personally started trading in the stock market when I was 14 years old. Of course, it was only on paper trades. Who would let a young teenager play the market with real money. fifthteen years later, I trained and was a licensed New York Stock Exchange broker for real. Let me share with you what I have learned about stock trading systems.

Suppose you were capable to conceive two systems; one for when the market was going up and another for when the market was going down. Meaning when you made money, you made a lot and when you lost money, you lost a little. That would be the mother of all market trading systems that you could find.

Everybody who studies the market closely will eventually think that they have found the secret of all stock market trading systems. That includes beginners as well as the pros. However, when you say the phrase  stock market trading systems the immediate thought is that you are talking about some way to forecast the future. That is true, but only partially.

Forecasting trading systems try to predict what will happen in the future based on what happened yesterday. For instance, for two decades, if the AFL won the Superbowl, the market ended lower for the year. If the NFL won, the exchange went up. Had you followed that as the top of all trading systems, you would have made money. Other stock trading systems that are created to predict, depend on phases of the moon, even the climate. Did you know that when the weather is bright and sunny in New York City, the stock market rises more often on those kinds of days than when the weather is cloudy and rainy' That is a fact that you can take to the bank. Still, is this idea of forecasting the exchange actually one of the stock market trading systems that we should be interested'

My experience tells me that when we look for trading systems, we should to be looking for a way to profit after we are in the market and worry less about forecasting the direction of the market. Never are any of the stock market trading systems that try to predict the market, right 100% of the time. However, what if I told you that you could make your money in the stock market even if you are wrong about the direction of the market most of the time' Now that would be one of the stock market trading systems worth knowing.