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Trading Systems Keep You Focused

Updated on June 30, 2012


Our biggest enemy when investing or trading is our emotions.  We need a way to circumvent this because emotional trading often leads us into actions that we should otherwise be doing.  Trading systems can help you reduce, and even eliminate, emotions from the equation.  I can bet that just about any trade that you took based on emotion you have regretted.  Maybe not all, but I am willing to believe that most of them did were ill timed.

Trading Systems are Emotionless

Trading systems keep you focused. They are emotionless and once they are working to your liking they can actually make you money.  Now this doesn't mean that if you are an investor that you have to start day trading.  That is not necessary or even recommended.  There are trading systems that can be set up to gear towards investing as well as shorter term trading.  It's all in how you use them.

Trading Systems Tell You When to Get In and Out

Trading systems keep you focused by letting you know when to get into an investment and possibly when to get out.  The second part is perhaps more important than the first.  Most people find it much easier to buy a stock than to sell.  Again, it's all about emotion.  If you are looking at a paper loss, you'll start to justify to yourself that the stock will likely bounce back.  And while that may be true, the opposite is also likely.  Or, the time frame for it to make a come back is just too far into the future.  But that won't stop your emotion-filled self from hanging on to that piece of garbage because you want to recoup that loss.

Trading Systems Capture Market Data Faster

Trading systems keep you focused by delivering market information that may not be easily obtained without their use.  The ability for a trading system to crunch numbers makes it a much more valuable tool than you trying to wade through the vast amounts of variables that exist in today's trading environments.


Trading systems aren't perfect. You may even need to tweak them in order for them to adapt to your trading style or to improve their signals. But when you compare having a trading systems to not using one, trading systems keep you focused and that is a far better deal than you leaving your financial future to the whims of your emotions.


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