Another one of the newbie "dumb questions".
I've been reading various material over the past few months - and almost all of these refer to a system or a trading system that one uses. I'm having trouble understanding what the concept of a "system" is. Is it basically the rules you use to trade?
So in theory can I say "My system involves me throwing a dart at a list of companies, and another two darts at a calendar to decide when to buy and sell"? abstract example I know, but follow me on this.
More realistically, does a trading "system" mean - the factors that govern decisions about:
1) Entry time and price
2) Position sizing
3) Stop Loss
4) Exit time and price
So in essence, you simply repeat the same system over a number of trades until you decide whether you tweak some of the above factors or not?
In the trades I've done in the past, bascially I didn't have any explicit "system" that i've used. Essentially I would look at a chart, determine if theres a trend, find out any major lines of support or resistance, and look at the volume activity. I would buy a number of shares based on a total amount I was happy to spend, and also set a price below which if it drops, I would accept the loss and get out.
Have I been using a system of sorts this whole time without knowing it?