What is Your Cornerstone for Success? 
As a trader, the answer should always be my trading system. If a trader lacks a successful trading system, then results are not going to be consistent. If this is a FACT, then the majority of every new trader or trader who is not getting desired results, should be focusing on how to create the ideal system of trade.

What is a system of trade?
A system of trade is a set of rules that a trader will apply to identify trades (entry, exit and target) within the market. The ideal system utilizes principles of trading and allows the trader to pinpoint entry, target and stop loss levels, which allows the trader to predetermine the risk in the trade.

An ideal trading system allows a trader to learn from each trade and improve upon the system day after day. A trading system must always remain a student to the market. 

Eliminate Emotions
Most traders fail to ever spend the time to clearly identify a system of trade, which ultimately leads to trading with emotions. Without a system, a trader cannot explain in detail why a trade was initiated. Without a roadmap laid out to each trade initiated, emotions enter and decisions are skewed as fear and greed become the deciding factor and not logic.

Taking The Ideal Approach
Creating a system of trade can take a lot of time (and pain) for an individual investor, if they start from scratch. The best approach is to take other’s principles of application, test them out and identify which ones work for you. Once you identify a handful of techniques or approaches that make common sense to you (with an understanding on how and why they work), then apply them into a system. The education offered on this site will give you a good head start, as numerous common sense and successful techniques are taught.

The Benefits of a Trading System
A successful trading system is a set of rules that are utilized solely because they have proven success attached to them. 

What does this mean? When a trader applies proven techniques and understands when its application is ideal, the trader can control his/her risk at all times and ultimately since the blueprints are laid out, emotions are eliminated. When emotions play a big role in the market, it is because the trader is not sure the reasoning of why a trade was placed or when the position should be closed. When this occurs and the unknown factor is present, emotions come into play. 

By applying a system of trade, emotions are reduced and often times eliminated as the techniques applied give the trader predefined risk and profit potential. The predefined risk and reward eliminates guesswork in the trade, as the trader knows maximum loss and gain potential at all times. If you have ever experienced emotions taking over after a trade is placed, you then know personally why it’s essential that a system is applied with predefined risk to reward. Reducing or eliminating emotions is one of the largest struggles a trader will face, create a sound system of trade and the solution is found.

Chart A

A Closer Look: 
Let’s say you were ready to place a trade. You enter the position because it looks like a good trade. Meanwhile you did not determine where you would exit the position or identify the maximum loss you would take. The trade declines and you start to lose money. During the decline you are now searching desperately for when to sell. As the stock continues its decline, you finally exit because your emotions are telling you to exit and losses are too excessive. The lack of a blueprint caused your emotions to take charge and the decision process went from logic to what your stomach could take (Chart A).

If the trade was entered with a given 2-point stop, you would not have experienced the same emotions, unless you averted from your approach. If the position dropped, you would exit and call it a loss, but your emotions would not get the best of you. Trading with a system eliminates emotions similar to watching a basketball game, where you already know who wins (Chart A).

Most Traders Give Up On a Trading System
When this occurs, the majority of those who fail to create a system never achieve success. There are numerous reasons why traders decide not to create a trading system. With predefined rules that are used for a trading system, it now means the trader has to have a grasp on successful trading tools. If they fail to have a handle on where to enter, where to sell, how to judge the risk in a trade and where to place a stop, then the trader will go in circles and find himself/herself selling too early in winning positions, exiting losing positions too late and getting stopped out of positions that run into winners.

To get the proper tools for a trading system, most traders spend half a lifetime with inconsistent results, until consistent results are finally achieved. You can eliminate costly mistakes and cut the learning curve down dramatically by learning some of the key principles placed on this site.

The Solution Sits In Front of You 
We give  the tools and point you in the direction needed to create a trading system. Not only do we give you the tools and propriety techniques we have both learned and created, we apply them daily so you can stay on the right side of the market and learn how to apply them at the same time.

Example System
Trading systems are simple in terms, but a journey to create. The below is a mock system we placed together, bare bones, for example purposes. 

Example of a System
1. Buy when market conditions are oversold; 
2. Never buy into overbought conditions; 
3. Never double down into a losing position, unless the market is at a 6 month oversold extreme; 
4. Never risk more than 10% on a trade; 
5. Take ½ of the position off the table at a 20% gain in the stock and 50% gain in options; 
6. Use trailing stops to prevent a loss when overbought levels are seen in the market in long positions and vice versa in oversold conditions. 

The rules are just a brief example of a system of trade. An actual system would carry greater depth and reasoning for each rule. If you look over the rules, you can see it’s a defensive approach. The approach outlines your risk (10%) and what to look for when a trade is placed (buy into oversold conditions). The system above will prevent a trader from entering at peaks (never enter into overbought levels) and at the same time controlling the trader's risk when trades turn profitable (trailing stop).

Creating a System
Generally when a system is created, it starts out with basic rules. The rules are tested and the principles and statistics of success are then studied until they are understood. As time goes on, further rules will be added and some rules will be removed. The end result is a system that identifies the factors within a trade, from risk to reward. The above example is not an actual system, but definitely the start of a successful one.

Steps of Creating a System
Steps will vary from person to person. Below is just a basic list placed together to help guide you in the correct direction for creating a system of trade.

Key Notes
A trading system is not always set in stone. Ideally it is just a blueprint to trade off of. As you become comfortable with your rules and find which work best, your insight into the market’s characteristics will improve drastically. At times your system will have to be set aside, but initially this action should not be taken until the system has a solid base. The more time you spend on your system of trade, the better your chances are of obtaining success in the markets.

Creating a system does not happen over night. We encourage you to take the time needed to create a sound system and make this a priority. If you fail to do this, your odds of success are near zero, if you want to be an active trader. When using our site, grasp the theories and principles we use and apply them to your own system to give you a jump-start to creating your trading system. We personally believe that our system is one of the best in the industry, because it was built around the understanding of how the market works and not just signals. Therefore we encourage you to make it a focus to learn as much from our system as possible, which will reduce your workload of creating a personal trading system immensely.