As soon as you search for a day trading system, your screen would be full of thousands of systems and software claiming to take you from rags to riches. Some of them would even let you see their track records, success stories and even overwhelming bank statements. And, then, either you’re too convinced to spend in the first day trading system that you see, or you’re more confused than ever.
But then there is a whole lot of difference in saying and going. Not every system that is out there is bound to perform. Moreover, these systems may work wonderfully at the initial stages but soon they would just turn into trash. If you’re assuming that the system would work for ever in all market environments. It troubles my heart to inform you that it would not. The system fails as soon as the market trends changes or everyone is using the same tactics.
It is an issue of common consideration, if anyone had such a foolproof system that could work forever to make nonstop money, why would anyone want to share it with you? The logic is simple; when it’s new it works on a unique working idea. However, as soon as it’s popular and the whole market is making use of the same formula it ceases to work.
The next disadvantage of using a system is that these are complex things and acquiring all the skills to handle the system in itself is a big challenge besides brushing up your trading skills.
It is not always possible to furnish accurate test results for the system. Thus, when you trade live using a trading system, the actual results may differ greatly from simulated ones. This knows as slippage. Efficiently handling slippage can be a huge obstruction in employing an efficacious system.