Trading system a tool, not guarantee. Profits require managing risks wisely.

I.

A trading system is just a trading tool for trading. Obtaining a trading system and making profits through the trading system are not exactly the same thing. The ability to use the trading system is far more important than the trading system itself, just like the key to winning a war is people rather than weapons. A well-designed trading system is only a necessary condition for investment success, but not a necessary and sufficient condition. The ability to successfully execute a trading system is the biggest test of a trader's psychological quality.

In the eyes of traders, market risks cannot be avoided and risk-free investment is impossible. Therefore, profit is a reward for the risk taken. Pursuing maximum profit under the premise of minimum risk is the basic principle of investment.

Never think that a profitable trading system can guarantee that every trade you make will be successful! Any profit is made up of small losses and big wins. Any trading system has weaknesses and losses are inevitable.

For a trend tracking system, it does not require that the number of profits be greater than the number of losses. It only requires constantly using small stop losses to find large profit opportunities. Such a system requires users to be prepared to accept small losses continuously.

II.

When the system is in a period of loss, do not easily think that the system needs to be changed or replaced. Losses are normal and must be accepted. At this time, you should tell yourself how to improve your ability and patience to deal with difficulties. If you abandon the system during difficult times, the nightmare of losses will always follow you, and profits will only wave and smile at you from a distance.

During the system's profit-making period, you must not be clever and think that you can use your own trading skills to improve the efficiency of the system. At this time, discipline is more important than anything else!

The difficult period of the system can improve your trading ability, and the reward period of the system can test your self-discipline. This is how the trading system constantly helps you improve and profit.

The essence of system trading is to deal with what is happening, not what will happen in the future. It trades based on trading signals, not by predicting the market.

Too many people spend too much time dealing with what will happen in the future, but are at a loss for what is happening now! This makes it impossible for them to trade effectively. They always want to be ahead of the market but ignore the reality of the market. Their trading is in a fantasy and lacks a realistic basis. This goes against the nature of the trading system. Correct trading ideas are the premise for using the trading system.

III.

For system traders, the ups and downs of the market are no longer important, what is important is the execution of trading signals. This is precisely the most difficult thing to do, because the trading signals of the system often contradict your views on the market. Many trading opportunities are missed when traders hesitate and hesitate. This is also the key to the different trading results of using the same trading system. System trading has shifted from judging the rise and fall to how to execute trading discipline.

Traders are often in the process of judging the rise and fall of the market, which will inevitably affect the effective use of the trading system. Whether the market is rising or falling, the system will send out trading signals at critical moments. Carefully implementing the trading system can greatly simplify our transactions and make them simpler and more effective. This is also the fundamental reason why the trading system is so important. Executing the trading system and abiding by discipline and principles will help you make profits, rather than complex analytical thinking.

Without the help of a trading system, it may take many years for a trader to reach the level of psychological quality required for a successful trader. With the help of a trading system, this process may be greatly accelerated. Traders can simply judge the soundness of their own psychological quality based on how well they execute the signal system.