Perhaps the most common mistake among traders, especially beginners is the search for the perfect strategy, ie one that rarely fails and allows them to earn tons of money in a few months, which should be clarified, there .
This search led many traders to spend hundreds or even thousands of dollars in trading systems developed by “professionals” who promise returns of 90% -95% and earnings exorbitant dedicating a few minutes a day to market. In these cases, the loss is not limited to the amount spent on purchasing the system, but also includes the money lost by the trader using the system to operate in the market.
Be aware that there is no such thing as a perfect trading system that produces almost no losses. The market is extremely volatile and variable, so changing their behavior. In a market like Forex, for example, what works today may not work tomorrow and vice versa.
Therefore, a system that produced steady gains over a given period, in another only causes losses. In general, house trading system works well under certain conditions and under others not so simple. For example, there are excellent systems for markets with clear trends either up or down, while trading ranges (no clear trend), are a failure. By contrast, other systems work particularly well in markets without a clear trend.
Being so difficult to develop a trading strategy that works under all market conditions, probably the best thing for a trader is using several strategies, according to the conditions prevailing in a given time. That is if the market is bullish or bearish and has a XYZ system specially designed for these conditions, the trader can use that system until conditions change.
It is also important that the trader has enough patience to wait for the market just this the right environment to use a strategy, because if you do not have that ability, probably open positions at the wrong time wasting good opportunities.
Also, you must understand that the market is not important just to have a good operational strategy, as there are other equally relevant aspects and more, such as money management and risk management.
A trading system can be extremely effective and succeed in most occasions, but without proper money management strategy in the long run will not be profitable trader and end up losing money. Therefore, rather than concentrate on finding a perfect strategy that can win cash in the market, the trader must put together a portfolio of trading systems suitable for different types of markets and conditions. At the same time, it must develop a comprehensive money management and risk manage their capital, and trading psychology to help you control your emotions in both time loss and gain.