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Why do we use the cruise control while we are driving? Several reasons. It makes our car more efficient. It keeps us from making irresponsible decisions like driving too fast. It keeps us from driving too slow if we have other things on our mind. It makes long trips less tiresome for the driver. Generally, if the conditions are right, it makes the trip a better experience all around. Systemized trading strategies can allow many of the same benefits to your trading account that cruise control allows to your car.

Consistent Results - The best way to get consistent trading results is with a consistent system that looks for specific opportunities. If you plan your entries and exits out completely, your performance will have less variation. Obviously, the conditions of the market will also have an effect on this, but your system will help you stay on track during good periods and bad periods.

Saves Time - You may not have hours every day to look for new trading opportunities. Depending on how you set it up, a good mechanical trading system can tell you in a few minutes whether or not you will have a new trade. Then you can place your order(s) and move on to other things. This is on a day to day basis though, you have to put your time in on the front end researching and defining your system with a good trading plan. Then the actual trades with this system are easy to produce.

Eliminates Fear and Complacency - Fear of losing money is one of the biggest obstacles to traders. Fear can make you miss opportunities and it can make you exit good trades too soon. Feelings of complacency are also a problem. Mechanical systems do not have feelings, they trade by the numbers and have no other concerns.

Controls Greed - Some traders have a tendency to trade more when they are doing well. This will get you into trouble. You will start to take larger and larger risks and this will most likely catch up with you eventually with a big loss. A trading system will keep you trading at a steady pace so you can enjoy the good times without getting too greedy and maintain confidence in the bad times without quitting.

Good day and good trading!

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