'Over The Counter Systems': Shall We Follow Them?

Bravetotrade Mod Updated   
NSE:NIFTY   Nifty 50 Index
While Surfing on the internet we find many websites where people claim to have a magical system which do not fails in any type of markets. Not only that, their claims at several instances have been statistically supported by them.

Any new gullible traders would simply like to have such a system. In order to make millions, he invests his hard earned money in to that.
Sooner than later he loses a lot of money following the system and realizes that the system actually does not work and he has been duped by the seller.

What happened to that trader would have happened to hundreds of others. It all starts from free calls, provided by the sellers, in your message box or email. During this free trial everything will actually work. But when you subscribe to the services, all of a sudden those calls stop working and you just lose much more than you expected.

The reality is that, people providing such services do follow a system themselves. The only problem is that there is no system in this world which works in all type of markets. There are most which work in trending markets, while a very few work during sideways or consolidation phase.
So even if someone makes money in the trending phase, he would lose more in the consolidation phase following the same system.

At present I have two solutions for the above problem.

1. Do not buy any system, no matter how fancy the claims are. Work yourself by learning about the market and utilize your learning by practicing in the market with real money. But ensure that you trade with little money in the beginning and not increase the trade size before you are consistent winner for one month. Learn to adjust your strategy according to market conditions, but not too often. I would suggest every 3 months time period to revise a strategy that has been religiously followed by the trader. Work more upon money management and market psychology than on strategy itself.

2. Search and use ready made systems. Better find 2-3 which work in different phases of the market. But it would be upon you to find out which one works better in one type of market than the other. It would also need time and patience to develop skills to evaluate the calls by yourself. As you gain experience you won't blindly follow the calls but would first ensure that they are up to your own parameters which would get developed over time. Proper Money management would be the key into this process.

I hope this brief discussion makes sense to most of the readers. Leaving rest of the discussion on the table.
Do like, do comment.

Trade safe, stay healthy.

Comment: Attaching some of my post for the new followers.

JJ Singh
Full TIme Trader/Investor
Moderator, TradingView

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