Spread Trading Solutions

In trading system there are two types of choices i.e. whether you want to become discretionary trader or a system trader. Discretionary trader is the trader for whom trading is decision based while system trader has rule based trading. But both types of trading system are equally profitable. In the discretionary trading, decision is made on the basis of personality traits. There are many people who want some experience of both type of trading to choose from while some immediately determine what type of trading will suit them.

Discretionary trader does buying and selling on its decisions. However there are certain fixed rules to follow but whether to make trades or not actually depend upon their discretion. System Trading is the trading where traders have to follow the trading system. System trading does not allow people to make their decision on making trades. A person does not even have the option to decline the trade at his discretion.

Since all types of trading system have same goal thus discretionary and systems trading also have the goal to make profit. Discretionary trading is most suitable for people who make immediate trading decisions and are in control of every aspect of money management, entry and exit rules of trading. Discretionary traders generally do not feel comfortable if all the control is assigned to the computer because of their artistic inclination in their background and prefer making their own decisions.

System trading, on the other hand, is beneficial for people who wish to have speed and accuracy in their trading. System traders do not have any problem if all decisions are taken by computer and thus feel free from the responsibility. System traders generally have computer programming and mathematics in their background and are logical people instead of being decisive.

There also exists a combination of discretionary and system traders in the trading system i.e. a discretionary trader can use the system trading but a system trader cannot use the discretionary trading. There is a choice for a discretionary trader to choose to follow the system trading and select the trade that system identifies. After that discretionary trader handles and exits his trades by taking his decisions. System traders do not use discretionary trading system because they have to follow the system trading exactly. However, if system traders diverge from their system even for one trade, they cease to be a system trader, and become a discretionary trader.