With the advent of the internet, many traders have turned to their on their own online.  With the declining markets, and the realization that brokers and advisers have exposure to the same barrage of news, traders quickly realized that so called “professionals” might not always have an edge.  So traders and investors have turned to [...]

Learn the risk involved in Systems Trading
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Systems Trading Advice
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Systems Trading (part 9) By: Jake Bernstein www.trade-futures.com
A Rational Approach to System Development
I favor a rational approach to system development.  My rule of thumb is simple: your trading system should have no more than four to six variables.  You should search for the best combination of entry and exit variables as well as a reasonable [...]

Systems Trading (part By: Jake Bernstein www.trade-futures.com
System Testing
The days of untested systems are gone forever.  In fact, the pendulum is now swinging in the other direction.  While unscrupulous operators ‘in the days of old’ sold systems and methods for which they claimed fantastic results, today’s unethical operators use statistics as a toll of deception.  [...]

Systems Trading (part 7) By: Jake Bernstein www.trade-futures.com
How about Some Positive Suggestions?
Now that I have your attention, I will give you a few positive suggestions regarding trading discipline.  Again, I will attempt to avoid standard recommendations.  This is not to suggest that the time-tested methods do not work.  Perhaps if explained and presented in a [...]

Systems Trading (part 6) By: Jake Bernstein www.trade-futures.com
Plunge Headlong into the Market Without a Plan of Action
This is an excellent to way to lose money and to lose it quickly.
Why make a plan anyway? Would you drive from New York  to Los Angeles without a map?  You could.  And you might be lucky enough to [...]

Systems Trading (part 5) By: Jake Bernstein www.trade-futures.com
A Few Good Ways to Lose Money Trading the Futures Markets
E.L. Thorndike, the “father” of American learing psychology, noted that there are literally thousands of “wrong” behaviors and only relatively few “right” behaviors.  His point was made in reference to the use of punishment as an aid to [...]

Systems Trading (Part 4) By Jake Bernstein www.trade-futures.com
System Trading, Discipline and Profits
•    Cut your losses and let your profits ride.
•    The big money is made int the big pull
•    Don’t add to a losing position.
•    Always use stop losses.
•    Don’t meet margin calls.
•    When in doubt stay out.
•    The trend is your friend.
The cliches are [...]

Systems Trading (part 3) By Jake Bernstein www.trade-futures.com
A Black Box Theory of Market Behavior: The Money Exchange
My understanding of the futures market is different from that of many traders.  I suggest divorcing oneself from traditional understandings.  We should view the marketplace as an organized vehicle for the exchange of money from weak hands to strong [...]