Last time we talked about how to evaluate the effectiveness of a futures trading system. But how do you build a solid trading system? Just like anything else:
- Start with your goal. What do you want to accomplish or achieve? What end result are you aiming for? This is your goal.
- Develop a plan to achieve your goal. You’ll need to factor in the risks, rewards, terms and conditions necessary to achieve that goal.
- Execute the plan and closely monitor the results.
- Make incremental changes to your plan until it reliably produces the results you want to achieve.
- Take your internal temperature. Gauge your emotions. Can you trade these signals and play the probabilities for gain vs loss laid out in your system. You must have confidence in your system and the mental fortitude to play it.
Item 5 is the most crucial and difficult part of developing an effective futures trading system. I tell my students: “If you cannot trade your plan, you will not achieve your goals.”
Read what my students have to say.
About Bill
