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System Versus Discretionary TradingThis blend of systematic and discretionary techniques is representative of the industry as a whole, and it provides a rounded perspective on the markets. A systematic trader may introduce more discretion into his approach over time if he gains confidence in his decision-making abilities. On the other hand, a discretionary trader may hone his technique to the point that he can apply it systematically, and he may see emotional or financial benefits of doing so. One approach is not better than the other, and in truth, there is usually a great deal of overlap. Highly successful traders can be systematic or discretionary, or some combination of the two. Most systematic traders at least reserve the right to override a particular trade signal under certain circumstances, get out of a trade early, etc., and most discretionary traders usually have at least a few basic rules they follow and situations they like to capitalize on—they are not just flying by the seat of their pants. ______________________________________________________________________________ Stock Trading Robot - Find out about the stock trading system that has picked stocks which have doubled recently. ______________________________________________________________________________ Technical trading strategies do not have to be complex to be effective. In fact, in most cases, the simpler the strategy, the better it works. Remember, however, that absolutely no strategy is perfect (the ones presented in the following chapters are not) and you are always well-advised to conduct extensive research and testing on any strategy before you use it in the markets. The trading ideas we will share with you are just that—ideas—intended to give you a sense of the kinds of trading approaches that are possible. The strategies in the following chapters are described using fairly specific, "systematic" steps for the sake of clarity and simplicity. They are not mechanical systems. Most of the techniques have an important discretionary element, which will be obvious when you read them. Even when specific stop or exit rules are stated, these should not necessarily be considered gospel—it is likely performance can be improved through familiarity and experience with these approaches; the rules simply provide the guidelines.
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