Systematic trading is crucial for long-term success and here is why:

Sticking to a trading strategy allows you to remain focused amid the huge inflow of news and economic data that can seriously impede your analysis process. Moreover, trading the news requires profound knowledge in the pricing characteristics of a certain asset or asset class (often in combination with technical analysis for setting the entry and exit points), which many novice traders lack. However, using a predetermined trading strategy based solely on price action will allow you to profit, disregarding the constantly incoming news.

You will be able to measure, and thus improve your performance. Chaotic trading lacking a certain trading plan leaves no opportunity to assess your performance, because you will have no constant basis for comparison. Using a trading system for a prolonged period of time allows you to build up a statistical database that will help you gauge its performance and once the assessment is complete, you can begin working on improving it. By changing certain parameters and comparing the new results again to the historical data, you will be able to see whether the upgrade was successful or not.

You will keep your emotions at bay. Emotions are tough to overcome, especially when it comes to losing your hard-earned money. Greed and fear can easily take control over a novice traders mind after a streak of good or bad trades. When greed kicks in, you will begin to bet too much money with each position, open more positions than usual and often double your bets when you see that your option is currently “in the money”.
Conversely, when fear sets in, the trader will avoid entering good positions and bet less money than he should, missing on a lot of possible profits. Thus, hanging on to a trading strategy will allow you to disregard volatility in your current performance, which will help you rule out emotions and focus on your long-term success.

Over trading is your enemy as well. Without a trading system with clearly defined entry and exit rules, a trader can easily slip into a frenzy of position opening. The bombardment of news, “advice” from professional traders, tips from friends, even the phase of the moon (yes, there are studies tying the Moons position relative to the Earth with cycles in asset movement, especially stocks), can cause a trader to initiate more trades than he/she can handle.

If you ask a bunch of traders which is the best strategy to follow, each person will most likely point out a different one. Not only that, but they will also split in groups about the type of analysis they use, and whether they are combining them. The truth is, there is no golden strategy, simply because the financial markets are rapidly changing. Unwritten rules which have been in force before, no longer work and if you want to keep riding the wave, you will need to evolve just like the market is.

Having cleared that out, we can point out several characteristics, which a reliable trading strategy should typically have.

The most effective and profitable strategies are usually quite simple. Of course, professional traders do employ advanced trading techniques, but piling more and more rules cannot guarantee in any way the strategy reliability and robustness. Quite the opposite. A very complex trading strategy, which intertwines a great variety of rules for different market conditions, would be difficult to execute and profit from, especially by a novice trader.

Each strategy requires thorough testing before being employed. Demo accounts are your friends. Every trader uses them no matter his experience, since they are a great way to test any new idea for free. We said earlier that different assets have different trading peculiarities, thus a strategy which works well for stocks might under perform when you use it to trade currencies. To find that out and tweak the system, you should best use a demo account.

Trading strategies become obsolete. Trading strategies do not remain effective forever. This is something quite normal, given the pace of development of the financial markets. Thus, a trading strategy performance is bound to diminish at a certain point, which requires monitoring. Once the strategy begins to under perform, you can fine-tune it, or you can just abandon it in case it entirely stops working.

All strategies are subject to draw downs. Each trading strategy, no matter how successful, will fail at a certain percentage of time. If the one you have chosen has a success rate of 60%, then in four out of ten times your binary option will end up “out of the money”. And because losing positions are unavoidable, the only thing you can do is to digest the losses with as little emotions as possible and stick to your trading plan and money management system. After all, it is the overall success we are after, not the temporary one.
https://t.me/bdsilentkiller