Indeed, online trading has
revolutionalised the way common folks
like you and me trade
in the capital markets.
Online trading has its pros and
cons. Online trading’s main pro is
convenience and speed, giving a trader
maximum control of all aspects of
trading. Conversely, online trading’s
main killer con is in the tons of human
error that can happen due to a lack of
guidance.
Due to a lack of guidance, most
online traders find themselves
extremely prone to their emotions when
trading online. When they feel the urge
to get out of a position simply because
their emotions are all fired up, they
can at the simple click of a mouse.
This has led to a lot of failed trades
and a lot of lost money.... The only
way anyone can succeed in online
trading in the long run is through a
disciplined trading regime based on a
fix trading system or what we called
“System Trading”.
System trading means that you pick
stocks based on a fixed criteria, enter
on a fix
criteria and exit on fixed criteria...
all put together nicely like different
parts of
a car. With system trading and a fixed
portfolio management policy can anyone
truly
attain success in online trading.
System trading aims to take the
emotion out of the trader by having
objective and specific criteria for
every aspect of online trading. With a
fixed set of criteria to follow when
online trading, the trader have
something to fall back on when emotions
start to fly, and that is, the proven
track record of the system that the
online trader is following. The online
trader is assured that as long as he
follows the rules to the nigh, the odds
of winning will always be stacked in
his/her favor. Over the long run, with
a sound portfolio management policy,
anyone can succeed in online
trading.