What is a trading system?

What is a system?

System is:

1. a set of things working together as parts of a mechanism or an interconnecting network; a complex whole. 
2. a set of principles or procedures according to which something is done; an organized scheme or method.

So, it is getting a few things that you believe will work and make it work as a group with measurable and desirable outcome/goal.

But you may not know whether it will work or not, you simply testing your believe which derived from your knowledge/experience/believe.

So you try to create a system, it starts with a couple of questions, and you answer the questions by research, copy and paste, and try to follow others. Why? because it is easy, and people like easy, proven, quick.... but it is not yours, it may not suit you, you may not believe it truly because at the first step you don't even understand the logic/assumption behind other people's believe that you trying to copy.

So, don't copy paste. Continue to do research, study more about top traders characteristic, traits, advice for fun learning not money. You start to face yourself in a quiet room, asking yourself

• why you want to trade? in fact, there are million things you can do. What is the reason you want to become a trader?
• are you sure you know what you are doing? what do you have? do you know what you don't have? do you know that you may not aware what you don't have? e.g. knowledge gap. So how to get what is required? So you continue to do research, facing yourself honestly, and have relationship with those knowledge and you finally believe it may work.

There you go, you have your believe. Now is the time to create system.

Referring above, a system is getting a few things that you believe will work and make it work as a group with measurable and desirable outcome/goal.

What is your trading goals (at beginning stage)? is it all about money? pips? behave better in trading?

I don't know about you, i choose behave better in trading as first step, pips a second, and money as third in the beginning stage.

I choose behave better in trading because i want to manage risk and trade with confidence. This is a long haul, not a few trades and i can then retire young and rich.

As I choose life as a trader, I need a map. A map of 1) where I am, 2) where I want to be, and 3) how to get there.

In summary, a trader's map inclusive of trading philosophy (believe, knowledge, rules, mindfulness), trading system (a few tools and resources to get where you want to be), trading plan (how you get there).

• When you travel with a map, you naturally believe the map is trustable and you comfortable to believe the map will get where you want to go (Philosophy). 
• When you look at your map, you will think chronologically that beginning and the destination can be divided into a few steps and you will brainstorm about a few things required in each steps/stage orderly (e.g. walk, take a taxi, fly with aeroplane, then landing and take a train and etc.) - that is called trading system. 
• Once you have the system, you will draft the strategy to manage it at your favour to reach your destination/goal (e.g. review cost, risk involved, feasibility study, research, choosing options available, a few questions, advantages, disadvantages, evaluate your risk-reward ratio, edge of trading, and etc.) then you make decision. - That is called trading plan.

A trading system simply means having a map you believe and plan your journey, more importantly to take a step and action with confident no matter you are right or wrong, that's the miracle of uncertainty and learning progress, or a trading journey.