Have you been searching for the magic formulae in striking pots of gold in the world of stock market?

These are some of the question that i have been asking myself ever since I involve in this market. I will want to say again that there are no magic system or formulae that will guarantee you in striking rich. If there are really such a system or formulae, do you think that the inventor will want to sell it?

Is auto system really that good for trading and is it really profitable in long run?

Automation system will only be profitable for a period of time as the market is too dynamic. You need to pay money for the system too. The computer system might spoil or HANG (Freeze). Just be careful with the temptation of easy money.

So i guess you guys will want to know how to create your own profitable trading system. It is rather simple to do it. There are a few things that you need to know before you start creating your own profitable system.

You need to know that the system that you are going to create will only suit you personally as each of us is build differently and have different characteristic. In short none of us is similar even for twins. Thus the system that you created might only suit you and not others.

You need to know that the system will need to change accordingly to the future market condition. This is easy as you will know what to modify if you are the creator. The system that work for you now might not work for the future as once again the market is very dynamic and the present economic is different from future economic.

Trader journal is the key towards creation of Your Profitable Trading System…

In your trading journal you need to have all the record of your transaction detail. On top of it, you need to indicate your feeling (bad mood) , your reason (rebounding off the support) and your environment (trading at my bedroom facing the green color wall). The key is to make it as detail as possible. You need to at least keep track for 6 months to a year. You need to review it weekly or monthly.

Slowly and surely you will be better in trading after you have review your trade with all the detail that you have put in. I know that it is a lot of work. This really cant be help as this is the ground work towards the future success. If you can’t put in this much of work, I rather you park your money into fix deposit or just buy GOLD BAR …

All the best in Creating Your Profitable System …

This is a 10 minutes scalp i made yesterday on 21/7/08. I’m very satisfied with this trade even though i did not make a killing. This is because everything go according to my trading plan or system. I went in at the correct timing, studies and indicators.  I got out at the pre plan profit. No less no more. 

I strongly believe that every successful trader or investor will have their own sort of trading rules, plan or system. Without a proper system, you cannot go very far. It is not the money that really does the trick in trading. You have to see the big picture which is Trade To Trade Well. If you focus too much on money, you will be so obsess with it and neglect the important stuff like indicators, money management, risk/reward ratio and ultimately your trading plan. 

Money has no value, it is YOU who give the value to Money. 

Focus on the target or goal that you have set for yourself. Focus on the trading system which work well for you. Focus all your energy in Trade To Trade Well. You will be rewarded eventually.