Stock Trading Rules vs Trading System
★ SUMMARY ★
Hey this is Sasha Evdakov and thanks for joining me this week at Tradersfly.com, where I share with you some insight about trading in the stock market.
In this week’s episode what I’d like to do is share with you some insight about Trading Rules and Why You should have Trading Rules and what’s the difference between Trading Rules and Trading Systems.
Starting with Trading rules and Trading systems
To get things started, let’s take a look at the trading rules and trading systems, so here if I have two things that are overlapping and in this section I’ll have rules and in this section I’ll have my system.
If we start looking at both of these things, when they overlap, this in part is your whole trading atmosphere; this is all the actions that you do in trading.
The rules here, your trading rules are actually things that are you, they are in part to help you trade. They’re internal to you personally. So these are the things that dictate what it is that you personally can and cannot do.
Now, the trading system over here, this is really all about your strategy and it’s also about the way that you trade. It’s basically your method to getting in and out of stock trades, to managing your money, it’s your system.
If you’re still a little bit confused between the rules and the system, let me give you a little bit of insight and examples or the difference between rules and systems, and maybe it’ll give you some insight to what kind of rules you want to create for yourself.
Examples to guide you
For example, one of the rules that I have, in terms of the things that I follow is I don’t trade pink sheets, or the over-the-counter stocks. Another rule that I may have is that I do not chase a stock that’s up 5 or 10 percent.
To give you another example, the rule that I have is to never move my stop.
Posted at: http://tradersfly.com/2016/03/trading-rules-vs-trading-system/
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