ETF Trading System For Beginners - System Rules
When you start trading you are going to find that there are many methods, strategies, and systems that look appealing. Some will seem very similar because they are hybrids of a long used ETF trading system. There are different rules of thought about systems among traders. Some people think that having a system and strategy are key to success. Other individuals don't think a system or strategy are necessary at all in ETF trading.
The Turtle ETF trading system was an experiment that was conducted in'83. Richard Dennis and Michael Eckhardt wanted to find out if people who had not experience with ETF trading could learn, and be successful in trading following a simple strategy.
The Turtle ETF trading system also showed that even though a system is simple. For instance, all systems have a Step 1, Step 2 approach, most people deviate from the system even when they are winning.
Most systems have two elements, one is trend following and the other is vector rotation. While an ETF trading system may sound successful and doable, if a person does not want to follow trends, they are not likely to follow the rules of a system that involves trend following.
All systems have some flaws. For some, the flaws are minimal and traders adjust the system to address the problems. The'83 Turtle ETF trading system was no different. There are many hybrids of the Turtle system available that have been tweaked. Some do not resemble the original system even though the users of the system say average annual returns of up to 80%.
When you choose a system there will be rules that you will need to combine with your selected strategy to make your trading more successful. The system and strategy combined will provide you with the knowledge you will need to enter and exit at the times that will provide the most gains.
The pairing of systems with strategies can provide the kind of results that a trader is looking for. Matching an effective ETF trading system with an effective strategy will require that a person do some research on the consistency of both system and strategy when paired with particular sectors.
The better you understand a system, the easier it is to set realistic goals. Setting buy and sell limits is the safety net for any system or strategy that is being used for the first time. Knowing the history of the ETF trading system will help to plan an exit strategy based on the trends of the sector that is being followed.
Discussing different strategies and their effectiveness with other traders and professionals will also be beneficial. By doing the research and homework before investing in the trades using an ETF trading system, you will be able to find the best system for you. When a system sounds good, but the rules of the system are not what your personality would follow, it is best to find a system that is more compatible with your personality. - 23196
The Turtle ETF trading system was an experiment that was conducted in'83. Richard Dennis and Michael Eckhardt wanted to find out if people who had not experience with ETF trading could learn, and be successful in trading following a simple strategy.
The Turtle ETF trading system also showed that even though a system is simple. For instance, all systems have a Step 1, Step 2 approach, most people deviate from the system even when they are winning.
Most systems have two elements, one is trend following and the other is vector rotation. While an ETF trading system may sound successful and doable, if a person does not want to follow trends, they are not likely to follow the rules of a system that involves trend following.
All systems have some flaws. For some, the flaws are minimal and traders adjust the system to address the problems. The'83 Turtle ETF trading system was no different. There are many hybrids of the Turtle system available that have been tweaked. Some do not resemble the original system even though the users of the system say average annual returns of up to 80%.
When you choose a system there will be rules that you will need to combine with your selected strategy to make your trading more successful. The system and strategy combined will provide you with the knowledge you will need to enter and exit at the times that will provide the most gains.
The pairing of systems with strategies can provide the kind of results that a trader is looking for. Matching an effective ETF trading system with an effective strategy will require that a person do some research on the consistency of both system and strategy when paired with particular sectors.
The better you understand a system, the easier it is to set realistic goals. Setting buy and sell limits is the safety net for any system or strategy that is being used for the first time. Knowing the history of the ETF trading system will help to plan an exit strategy based on the trends of the sector that is being followed.
Discussing different strategies and their effectiveness with other traders and professionals will also be beneficial. By doing the research and homework before investing in the trades using an ETF trading system, you will be able to find the best system for you. When a system sounds good, but the rules of the system are not what your personality would follow, it is best to find a system that is more compatible with your personality. - 23196
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posted by X - Men @ 8:29 AM
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