There are major mistakes that prevent traders from making money and learn the basic principles that took successful traders years and thousands of dollars to discover. Nevertheless trading is just as understandable, predictable and profitable as any other business. Not only beginners but also experienced traders tend to ignore or forget about taking steps to protect their capital against these types of catastrophes.

A trading system is simply a set of rules that address every aspect of a trade such as entry and exit conditions and money management. Regardless of how complex it may be, a good test for your trading plan is to hand it to someone else to read thoroughly. If you are trading now and have not taken the time to write out methodology, then stop trading and get it done.

When you take time to sit down and spell out how you perceive the markets, you are accepting the fact that you might be wrong. You are beginning to accept responsibility. Once you write down how you perceive the market, the only conclusion you can arrive at, if the market does not behave according to what you wrote, is that your perception is wrong. When you write down how you are going to enter a trade, only if certain events transpire, you eliminate any possibility of blaming the market. You are forcing yourself to have discipline. You can also know more about chronoption trading strategies via http://www.guide-chronoption.com/ (which is also known as strategies de trading chronoption via http://www.guide-chronoption.com/ in French language).