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Beyond Technical Analysis: How to Develop and Implement a Winning Trading System, 2nd Edition by Tushar S. Chande

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Chapter

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Developing and Implementing Trading Systems

Nothing is easier than developing a trading system by the usual process of trial and terror.

Introduction

Trading has been called the hardest way to make an easy dollar. To be consistently profitable, we must all climb the trader’s mountain (see Figure 1.1). Top traders are internal attributors who take personal responsibility for their trading success. The foundation of their success is adequate capitalization coupled with an unwavering commitment to excel at trading. Successful traders have sufficient trading capital to withstand losing periods, as well as to trade many markets with multiple contracts. These traders simply love what they do, are constantly searching for better trading concepts, and devote the time and energy necessary to achieve their trading goals.

Capital conservation is just as important to top traders as capital appreciation. They know better than anyone the importance of having trading capital when the markets finally move in their favor. Top traders use sound money-management principles and rigid risk control to preserve capital during difficult market conditions.

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Figure 1.1 The mountain a trader must climb for trading success.

All successful traders have developed specific trading competencies that match ...

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