📈 What Is a Trading System? A Beginner’s Guide
In the world of investing and trading, you might often hear people say, “I use a trading system” or “I follow a system-based strategy.” But what exactly is a trading system , and why is it important? Let’s break it down in simple terms. 🧠 What Is a Trading System? A trading system is a set of rules or a method used by a trader to decide: When to buy a stock, cryptocurrency, or asset When to sell it How much to trade How to manage risk Think of it like a recipe. Just as a cooking recipe tells you what ingredients to use and how to cook a dish, a trading system tells you when and how to trade in the market — based on logic, not emotions. 💡 Why Do You Need a Trading System? Without a system, trading can feel like gambling. Emotions like fear and greed can lead to poor decisions. A trading system helps you: Stay disciplined Avoid impulsive trades Manage losses Improve consistency ⚙️ Types of Trading Systems 1. Manual Trading System You...