A COMPLETE TRADING SYSTEM
Most successful traders use a ‘mechanical’ trading system. This is no coincidence.
A good mechanical trading system automates the entire “decision-making process” of trading. Having a “mechanical” system does not mean it’s an automated software program or anything like that.
What it simply means is that the system provides answers in advance for every decision a trader must make while trading.
A mechanical system like the ones you’ll learn in the SPBANKBOOK TRADING SYSTEMS makes it easier for a trader to trade consistently because there is a clear, pre-defined set of rules.
And these rules specifically define exactly what should be done under all circumstances.
Put another way, the mechanics of trading are not left up to the judgment of the trader.
The key, of course, is to know you’re using a system of rules that stacks the odds in your favor by giving you the opportunity to make money over the long run.
That makes it much easier to take signals and trade according to the system during periods of losses.
In contrast, if you’re forced to rely on your own judgment during trading, you may find that you are fearful just when you should be greedy, and greedy when you should be fearful.
If you have a mechanical trading system that works -- and you follow it consistently -- emotions are removed from the decision-making process.
Despite the inner emotional struggles that might come from a long series of losses, or an incredibly large profit, you’ll be consistent, confident and disciplined.
In fact, the confidence, consistency, and discipline you have when using a thoroughly tested mechanical system are the keys to many of the most profitable traders’ success.
The trading rules cover every aspect of trading, and no decisions are left to the subjective whims of the trader.
The trading manual rules cover every component of a Complete Trading System.
The 6 Key Components of any Complete Trading System:
As with any fully developed and thoroughly tested mechanical trading system, the SPBANKBOOK TRADING SYSTEMS cover each of the decisions required for successful trading in advance:
1. Markets -- what to buy or sell
The first decision is what to buy or sell, or essentially, which markets to trade. With any of the SPBANKBOOK. TRADING SYSTEMS you’ll discover how to set alerts in any market you choose. These alerts act like a “trigger,” so you’ll know when it’s the right time to take action.
If, for example, you just invest in American future markets, you’ll discover how to set a “trigger” when the S & P 500 crosses a certain point. Most importantly, by following these rules you’ll know in advance exactly what to do when that trigger goes off!
2. Position Sizing -- How much to buy or sell
How much to buy or sell is the single most important -- yet least understood -- aspect of trading. Most beginning traders risk far too much on each trade, and greatly increase their chances of going bust, even if they have an otherwise valid trading strategy.
With any of the SP BANKBOOK TRADING SYSTEMS you’ll have the same formula used to determine, in advance, what percentage of his tradeable assets to put into every trade. We have incorporated the Fixed Fractional Position Sizing calculator into each spreadsheet that accompanies your trading manual and the proper number of contracts to trade are automatically determined ahead of time. All dependent on the current assets available for trading.
(Please Note: Our formula for position sizing is not intended to, nor does it attempt to, offer personalized investment advice. This should be viewed the same way you’d view one of the myriad textbooks on the subject of position sizing.)
3. Entries -- When to buy or sell
The decision of when to buy or sell is often called the “entry decision.” Like all good “mechanical” systems, you’ll learn how to generate entry signals, which define the exact price and market conditions to enter the market, in advance.
4. Stops -- When to get out of a losing position
Traders who don’t cut their losses will not be successful in the long term. As you’ll learn, the most important thing about cutting your losses is to predefine in advance the point where you’ll get out, before you even enter the position.
5. Exits -- When to get out of a winning position
Many “trading systems” that are sold as complete trading systems don’t address the exit of winning positions. Yet the question of when to get out of a winning position is crucial to the profitability of the system. With the SPBANKBOOK TRADING SYSTEMS, you’ll learn how to set pre-defined triggers so you’ll know, in advance, when to sell a winner. We have always believed that pre-defined exits points are more advantageous over time than using the trailing stop procedure.
6. Tactics -- How to buy or sell
Once an alert has been generated, where and how you execute the trade becomes important, especially when dealing with large amounts of money.
We believe using a mechanical system is the best way to teach you how to invest from home.
Mechanical systems make it easier to trade consistently, and successfully, because it doesn’t leave important decisions in the hands of the trader.
As long as you follow the rules religiously, then your trading will likely be very profitable, and the system will help you survive the emotional struggles that inevitably result from wide swings in the market.