How can I make a proper trading system, that would actually work for me?

<p id="isPasted">Creating a trading system that "works for you" is a personalized process. A system is only effective if you can follow it consistently, align it with your personality, and manage its risks. It requires a structured approach built on four main pillars:</p><p><strong>Pillar 1: Define Your Trading Style and Goals</strong></p><p>First, you need to understand yourself and what you want to achieve.</p><ul><li>Trading Style: Are you a scalper (many quick trades per day), an intraday trader (trades closed by day's end), a swing trader (holding trades for days or weeks), or an investor (long-term)? Your style determines your time commitment and required analysis.</li><li>Risk Tolerance: How much financial and emotional pain can you handle on a single trade or in a drawdown period? Be realistic.</li><li>Capital and Goals: Define your starting capital and a realistic goal (e.g., "15% annual return with minimal stress," not "double my money in a month").</li></ul><p><strong>Pillar 2: Develop a Clear Strategy</strong></p><p>Your strategy is the "what, where, and why" of your trades. This can be built by drawing from resources like the "Fibonacci journals" you previously mentioned, but it must be concrete.</p><ul><li>Market Selection: Decide which instruments you will trade (e.g., a specific currency pair like EUR/USD, or certain stocks).</li><li>Entry Criteria (The "Why"): Use specific indicators or chart patterns to trigger an entry. For example:</li><li>"Enter a long trade only when the price bounces off the 61.8% Fibonacci retracement level and the RSI moves above 30."</li></ul><p><strong>Exit Criteria (Risk Management):</strong></p><ul><li>Stop-Loss: Pre-determine where you will exit a losing trade (e.g., "$50 below entry" or "10 pips below the Fibonacci support line").</li><li>Take-Profit: Pre-determine where you will exit a winning trade (e.g., at the next key resistance level, or when your Risk-to-Reward Ratio is 1:2).</li></ul><p>Understanding the elements of a trading system involves exploring various aspects of financial markets and personal decision-making. Developing such a system is a complex process that requires careful consideration of many factors.</p><p>Exploring the concepts behind trading strategies can involve learning about technical analysis, fundamental analysis, and risk management principles. Each of these areas provides a different lens through which to view market movements and potential trading opportunities.</p><p>It's important to remember that engaging in trading carries significant financial risk, and there is no guarantee of profits. Many resources are available for those interested in learning more about financial markets and trading, but it is crucial to approach this topic with caution and a thorough understanding of the potential risks involved.</p>