Many traders use trading systems, created by other people. Making deals according to a strict set of rules brings stable income, but only in the case when you have chosen the right trading system. It is not only about rating its effectiveness, but also about the fact, that the trading system should correspond to traders character traits and his lifestyle.
First, you need to evaluate, how much time do you want to spend on trading. If your current job takes too much time, you wouldn’t be able to use scalping, because they demand a flow of making decisions.
Another important thing – the percent of losses that you can afford. Some trading systems allow doing several lossmaking deals. As a result, you may lose about a third part of your budget.
A good trading system should describe rules for entering or exiting market, money management and risk management rule. You need to use this characteristic to find out, what instrument you find good.