Trading systems are technology based programs centered on software to assist the investor in identifying opportunities for trading. The common misconception that most new traders have is thinking that technology is going to be the answer for their online trading.
They expect to pay a few thousand dollars for the latest software, install it on their computer, and wait for the application to analyze the market and identify entry points and potential trades. Those individuals are typically looking for a quick way to make a profit, and it is easy to follow the many infomercials on television and the advertising on the internet that promises the latest trading software will consistently identify profitable trades.
These traders soon realize that technology is not the correct answer for trading, and that there is a specific path to correctly trade in an online exchange. Technology does have its place in trading, but it only work in precise, unique market conditions; it evaluates months or years of market data on a regular basis, looking for a price anomaly or infrequent price activity that is typically reflected in trending markets.
The concern is that trending occurs only 20% of the time (which was a key aspect on the development of ThinSlice Trading) but new traders believe that the software will consistently find trending patterns. Software applications perform best in larger time frames such as, one hour, four hour, or daily charts, and these time frames require more investment.
The larger the time frame, the larger the capital requirement, the larger the risk, the larger the profit potential, and the less frequent the opportunities to trade are. When technology finds a good trading opportunity, the position is usually held for weeks or months; even though the trade might actually work out, during the trade there is usually a retracement showing the trader’s account with a negative balance for a few days, which most traders cannot handle and subsequently close the trade; the market then regains its momentum, and the initial trade works out.
Most of the traders cannot effectively trade technology given that they are usually looking for a short term profit.
Rule-based trading applications can be utilized in all time frames and all market conditions. ThinSlice Trading, developed by Steve Rising and The Forex Trading Institute, is a proven rule-based trading application, which consists of a set of rules that are easy to apply and can consistently generate profitable trades in trending or sideways markets.
The shorter the time frame, the smaller the risk, the smaller the capital requirement, the smaller the profit potential, and the more frequent the opportunities to trade are. ThinSlice Trading is specially designed to find the best trading opportunities in these shorter time frames.
For a new trader looking to generate residual income, the program offered by The Forex Trading Institute can generate the most consistent profits. It requires more attention from the trader since there is no software identifying any entry points, but it yields a much more reliable approach to online trading.
Sign up and attend one of our free online trading webinars and discover the details of ThinSlice Trading today!
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