Whats the difference between system development and trading?
System development is different than trading. For a beginner, it’s learning how to trade. For a seasoned trader or investor, it is ongoing research. But in either case, it is different from the actual tasks of trading. I have continually asked top traders how they learned to trade and there are a lot of commonalities. As a result, I have incorporated many aspects of systems development into my work. It started with the material in How to Develop a Winning Trading System that Fits You courses and has evolved into detailed information about position sizing and expectancy. Jack Schwager says in his New Market Wizards that the most important characteristic that all market wizards have is that they’ve adopted a trading system to fit their personality. Well, that’s the concept that I’ve seen work over and over again and it’s what I’ve built my system development work upon. What can you share with us about system development? First, there are a number of psychological issues involved in syste
