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The following is provided from our premier training partner, Dr. Van K. Tharp. from the International Institute of Trading Mastery. Dr. Van is a traders coach, and is included in Jack D. Schwager famous book of interviews with the worlds top traders called "Market Wizards". Click the Developing A Winning Trading System header link above to learn more about Van Tharps winning trading philosophy.

"When I first entered the business of coaching traders most people thought that a trading system was an indicator." - VK Tharp
There are folks out there who are obsessed with,

1) Finding the right stock that will make them a fortune and they think there is some magic way to do that.

2) Working on developing a trading system to the point of perfectionism; and never getting around to actually trading.

3) Finding the ideal “system.”

4) Just looking for someone to tell them what to do

Do you relate to any of these scenarios?

Every trader needs a strategy or system to form a framework for their trading. Without a repeatable way to identify and execute trades, one can never be a consistent performer. Basically your system is a roadmap that guides your trading and keeps you from making decisions when you are least able to do so. Meaning that trading can be stressful. It's easy to get distracted. Life goes on regardless of what the market is doing. If you hear news about the market changing or you're running late for your next appointment you are not likely to make good decisions about your trades.

However, many people believe that a trading system is something that is “bought in a box,” something that other people have created with specific technical skills or secret knowledge of the markets that they just don’t have. Well it isn’t.

There are hundreds, if not thousands, of trading systems that work. But most people, after purchasing a system, will not follow the system or trade it exactly as it was intended. Why not? Because the system doesn’t fit them or their style of trading.

One of the biggest secrets of successful trading is finding a trading system that fits you personally. Developing your own system allows compatibility with your own beliefs, objectives, personality, and edges.

Why develop my own system? Isn’t it easier to just go buy a system with proven results?

When someone else develops a system for you, you don't know what biases they might have. Most system development software is designed because people want to know the perfect answer to the markets. They want to be able to predict the markets perfectly. As a result, you can buy software now for a few hundred dollars that will allow you to overlay numerous studies over past market data.

Within a few minutes, you can begin to think that the markets are perfectly predictable. And that belief will stay with you until you attempt to trade the real market instead of the historically optimized market. Many trading accounts have plummeted from this very thinking. One “sure-thing” trade placed without proper position sizing can wipe some traders completely out of the game.

And what if the person peddling the system is just a great marketer who makes their money from selling systems – not from actual trading? How would you know?

In Van’s experience very few people have really good systems and one of his jobs is to teach traders what it takes to develop a complete system for themselves. It isn’t rocket science; it just takes commitment and the right knowledge.

You may be thinking, “But I don’t have the computer or math skills to create a system myself.”

This is one of the biggest misconceptions out there.

If computers, math or anything mechanical terrifies you, that doesn’t mean that you can’t determine how and what you want to trade, which is the basis behind developing your own system. In fact, you’re the ONLY person that really knows what will work for you.

The key thing to remember about system development is that the trading strategy is THOUGHT UP by you because it fits your beliefs, wants, desires and needs. You can hire someone else to computerize your strategy if you want to do that and can’t do it yourself. There are plenty of programmers that will do this for you.

However, not all trading systems have to be computerized! In fact, people have designed and tested successful trading systems for years by hand. Of course computers make things quicker, faster and more efficient, but they are not necessary at all unless you need to use computers to feel comfortable about your trading.

(If you disagree with this, then you probably DO need computer testing to feel comfortable or maybe you believe that when a computer generates numbers, it is more accurate)

If you truly understand what a trading system really is; then this will all make sense. It isn’t complex, unless you choose to make it so!

Below is a low risk high reward trading system built into a software program. This trading software looks for three specific chart patterns which have over time provided low risk high reward trades. Reward/Risk ratios of 3:1 upwards of 15:1 which is huge. Along with applying Van Tharp's trading concepts to your own personal style of trading and using the MTPredictor Trading Software, winning in the markets is a virtual certainty.

MTPredictor Trading Software
High Reward Low Risk Trading
Free Trial / 10% Discount For Invest2Success.com Users

MTPredictor Trading Software that finds, evaluates and manages high reward low risk trade setups in stocks, forex, futures, options, indexes, currencies and commodities. For margin leverage trading accounts, the software comes with an automatic money management function to correctly position size and not over leverage.

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