Stock Trading Systems

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By: Anne Durrell

There are people who believe that they have a foolproof system to beat the odds at a casino's blackjack tables, and there are people who believe that they have foolproof stock trading systems.

The awful truth is that stock trading systems come and go because no system is foolproof until someone invents a time-travel machine or perhaps a "real" crystal ball.

There are, of course, some stock trading systems that are superior to others, and if a company has had decades and decades of time spent to develop highly effective investment strategies, then it's possible that a company's stock investment trading system as well as its trading regimens can be helpful to the average stock trader.

Undoubtedly those companies who feel as if they have winning stock trading systems have been through many different kinds of economic cycles, be it sideways markets, to inflation, recession, growth, aggressive as well as thoroughly stabilized markets.

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Those who promulgate such systems will pooh-pooh the online and real-time classes held by various companies as a total waste of time as well as effort. In truth, they may well be correct, for learning a system or worse yet, creating your own, is not easy and is extremely time-consuming.

Actually any one company that offers you such a system and holds out a guarantee of success is undoubtedly a charlatan and should be steered far away from. No one, but no one can even remotely guarantee that their stock trading systems will work!

Part of the problem with systems is that it's never sufficient to understand how to read various charts. You also need the knowledge of drawing trend lines, analyzing risk, and predicting when the reversals in the market will occur. Then, and only then can people invest in the right stocks at the right time, as well as getting out in time too.

Sellers of stock trading systems will tell you that a golfer needs expensive sets of clubs, and a mechanic needs to purchase his own professional automotive tools, and that's true however, investing in a professional set of software or joining an expensive analyst's group will unfortunately not create that crystal ball spoken about in the first paragraph.

By the way, one way to estimate if either a software purchase or joining such and such a group selling you stock trading systems will enable you to make money is to be aware of the "poof" system. This is when people or groups make mistakes, the entries suddenly go "poof."

This means that they have removed whatever false signals they had inserted previously. What's interesting about any market investment is that they are "news" driven, thus can turn on a proverbial dime and more often than not, they do just that!

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