The word ‘systems’ when used in terms of trading and investing invokes thoughts of complicated computer software tools completing intricate analysis tasks and procedures but in reality, systems create order, consistency and objectivity.
Systems are the very definition of a Road Map and they enable us to operate in “auto pilot” mode and react to things that occur around us. They free us up to be more responsive to the uncontrollable, the unexpected and the dynamic aspects of the markets.
We all operate with systems, most transparent, some not. From the road rules we abide by when driving on the road, the computer systems we use at work, to the cleaning duties that are undertaken at home. We either have systems in place to do the heavy lifting for us, or we are the system.
Building a good system involves comprehensive knowledge of the environment, skills to achieve the task and thoughtful planning. This starts with identifying the key processes or actions that need to be undertaken to achieve a certain goal.
So it’s simple. Using a S.Y.S.T.E.M Saves, You, Stress, Time, Energy & Money. Systems make things quicker and easier. They create consistency and when implemented with a disciplined approach, success can be achieved.
So before you make your next trade, question how you have arrived at the ‘Buy’ decision. Are you simply using gut feel and intuition or do you have a system that guides you?
I don’t know how anyone can live without systems in their everyday life, why should the market be any different?