It's every trader's dream to earn well from trading. As most experienced investors will tell you though, this isn't a walk in the park. It takes a lot of time and hard work to get the cash to roll in. Moreover, you'd need a combination of analytical skills and gut feel to identify the best stocks to trade.
This is why many traders get attracted to black box trading plans. These are programs that run on their own and make suggestions on what you should buy. This is an extra attractive tool for neophytes who are too afraid of the risks or the work involved in trading. With an auto system, you don't have to do difficult analysis.
What isn't easily apparent is that no good can come out of using these types of programs. One reason why it's a bad idea to use them is because they don't explain themselves. Black boxes offer suggestions on where to put your money but never tell you why. That's almost as if all they're doing is guessing which is never a good trading practice simply because you need to understand what goes on behind the scenes to be able to conclude if you're taking a risk that's reasonable or manageable.
Consider too that pre made trading programs have no consideration for the differences among traders. Obviously, you don't have the same preferences or risk tolerance levels as others. Hence, a ready made recommendation may not fit you even if it will fit others.
In short, black boxes lack the flexibility and analytical skills needed to be effectively used by traders who differ from each other. It would therefore be foolish to hand over your investment money into a program that does little more than spew out random suggestions.
Instead of putting your money on black boxes, you can divert your resources into developing a solid trading system instead. Your own system is simply a blueprint that you follow in order to find out what you should trade and when you should enter and exit.
Personalized systems differ from pre programmed ones because of the element of human intervention. Because you made it, you'll be able to factor in your unique risk tolerance. You will never have to lose money that you don't want to lose.
A trading system should ideally be created from a clean slate. There is however, no rule that says you can choose a system that's already successful and tailor it to your specifications. The hugely popular Darvas plan for instance is one of those systems that experienced traders love to customize and use as their own.
It may take a great deal of time and testing to find the best plan that will fit you. Some traders who have been around for awhile will attest to using more losing systems than winning ones. If you put your energies to it though, you will eventually find the right plan that can help you win more in the long run.
Sure enough, trading can give you the best financial rewards life can offer. Just always keep in mind that you should never take shortcuts so throw your black box system out the window and start working hard on your own system.
This is why many traders get attracted to black box trading plans. These are programs that run on their own and make suggestions on what you should buy. This is an extra attractive tool for neophytes who are too afraid of the risks or the work involved in trading. With an auto system, you don't have to do difficult analysis.
What isn't easily apparent is that no good can come out of using these types of programs. One reason why it's a bad idea to use them is because they don't explain themselves. Black boxes offer suggestions on where to put your money but never tell you why. That's almost as if all they're doing is guessing which is never a good trading practice simply because you need to understand what goes on behind the scenes to be able to conclude if you're taking a risk that's reasonable or manageable.
Consider too that pre made trading programs have no consideration for the differences among traders. Obviously, you don't have the same preferences or risk tolerance levels as others. Hence, a ready made recommendation may not fit you even if it will fit others.
In short, black boxes lack the flexibility and analytical skills needed to be effectively used by traders who differ from each other. It would therefore be foolish to hand over your investment money into a program that does little more than spew out random suggestions.
Instead of putting your money on black boxes, you can divert your resources into developing a solid trading system instead. Your own system is simply a blueprint that you follow in order to find out what you should trade and when you should enter and exit.
Personalized systems differ from pre programmed ones because of the element of human intervention. Because you made it, you'll be able to factor in your unique risk tolerance. You will never have to lose money that you don't want to lose.
A trading system should ideally be created from a clean slate. There is however, no rule that says you can choose a system that's already successful and tailor it to your specifications. The hugely popular Darvas plan for instance is one of those systems that experienced traders love to customize and use as their own.
It may take a great deal of time and testing to find the best plan that will fit you. Some traders who have been around for awhile will attest to using more losing systems than winning ones. If you put your energies to it though, you will eventually find the right plan that can help you win more in the long run.
Sure enough, trading can give you the best financial rewards life can offer. Just always keep in mind that you should never take shortcuts so throw your black box system out the window and start working hard on your own system.
