In the “old” days all security systems were hard wired systems. This means that all of the alarm devices were physically connected by wire. This wire runs from the security panel to all of the door and window contacts and all of the motion sensors. These systems also had an alarm panel that was usually located in a hall closet or possibly in the attic. The keypad also had a minimum of a 4 wire conductor run to the control panel. These types of systems are still in use today and are widespread across the country.Disadvantages of a Wired Alarm SystemAn alarm system of this type has all of the features of a wireless alarm system so as far as features they can compete head to head. The problem with these systems is that a wire must be run from the control panel to any new device. This made it very tough for a Do It Yourselfer to install a security system. There is also the issue of potential damage to the physical piece of wire. The wire can be gnawed on by rodents or broken by other contractors that are in your attic for unrelated repairs. These types of repairs can be very costly because there can be a fair amount of troubleshooting involved. The actual repair can be minor but the time involved in finding what to repair can take hours.Wireless Security Alarm SystemsA wireless alarm system has a huge advantage over a wired system in that new alarm system devices can be added very easy. Even a Do It Yourselfer can add devices as needed. There are also no wires involved except for the wire to power the control panel. All of the wireless devices are operated by battery. These batteries can last for a year or more. The system is supervised so any tampering with the devices will be detected. When the batteries are getting too low to operate there is a trouble generated to notify you that it is time to change the batteries. This is very easy to do by the alarm system owner so there is not a need to make a call for service if you are just a little handy. There are no wires to speak of so there can be no damage to them.Disadvantages of a Wireless Alarm SystemThe wireless alarm system operates with batteries and even though they do last a long time they will still need to be changed at some point. If you have a large number of home security devices then the expense should be taken into account as part of the cost of maintaining the system. Another potential problem with a wireless system is the range of the alarm devices. Depending on the construction of the home or business there may be some difficulty in the control panel receiving the signal. The range can be a limitation in larger homes and might require a wireless repeater. This will increase the signal range of your wireless alarm devices but does add additional cost to the cost of the system.Hybrid Alarm SystemsThese systems are a combination of wireless and wired systems. Most wired alarm panels can be made into a hybrid type panel. You can add a module that will communicate with the wired panel and allow you to add wireless devices. There are also wireless panels that have devices that can utilize wired zones. If you have a number of wired zones already in place and you want to upgrade to a wireless system this can easily be done by using a door contact that will accommodate a fixed magnetic sensor.All in all a wireless system is much more versatile than a wired alarm system. Many alarm companies will want to install a wired system because they are using subcontractors and do not care about the amount of labor to install the system since they are paying a flat rate. If you do your home work and decide that you do want to have a wireless alarm system then do not allow yourself to be convinced that the wired is better.
Why you need Forex trading systems and strategies.
Learning how to trade profitably requires you to learn and master a few Forex trading systems. The key to trading is becoming a master of a few trading strategies not the jack of all. Forex trading systems are important as they will provide you with structure, a set of rules and a plan to follow. This article will discuss some of the different types of Forex trading strategies that are currently in the Forex market and teach you how to identify what makes the best FX trading system.Indicator Driven Trading Systems.
Approach with extreme caution, indicator driven strategies are often designed by someone who notices that this set up is currently working right now. The problem is just that, it’s working for that present moment and often very little analysis has been done to understand the longevity of this Forex trading system.The biggest issue with Indicator based Forex trading systems is that it uses indicators to generate a trading signal as opposed to pure price action. Indicators are lagging and therefore tend to give poorer and late signals than pure price action which is most up to date information on the chart.However, as this trading system often looks exciting and ‘sexy’ on the charts many amateur traders find this trading strategy far too tempting.Some guru’s latest flash in the pan trading strategy.
A trading system which comes with the guaranteed promise that you will ‘never lose again and will turn your computer into an automated cash machine’; unfortunately the world is filled with these so called ‘guru’s’ and their millionaire making Forex trading systems. Experienced traders know that losing trades is part of the game, you will always have losers and winner’s you must be prepared to take loses. Professional traders understand no Forex trading strategy is ever guaranteed, however with trading results and back tested performance figures they focus on the overall picture of success. The best way to avoid falling victim to these scams when finding a Forex training company is to have proof of their strategies live trading results. This way you will understand the realistic and honest performance of their strategies.Trading systems that actually work…Harmonic trading patterns.
Harmonic trading is the art of recognizing particular price patterns in line with Fibonacci extensions and retracements to calculate turning points in the financial markets. Confused yet? Harmonic trading is complex and requires a lot of time and practice to master, yet it could be one of the best trading systems because it offers high reward vs risk ratios and it is very versatile. It can be traded on any market on any timeframe.If you are just starting off learning how to trade the market your initial focus should not be on harmonic trading patterns as they will take a lot of time and focus to understand. However for more experienced traders looking for a new trading system to add under their belt, harmonic trading is worth a look.Old school technical analysis trading strategies.
This particular trading system is well known and well traded throughout the Forex community for many years. Technical analysis includes; ascending triangles, consolidation breakouts plus head & shoulders patterns, flag patterns to name a few. The benefit in learning these trading systems is that they do work and they have decades of data to prove it.The downside to these systems is many newer traders find this approach to trading dull and perceive it as old fashioned. It lacks the glamor and excitement of indicator driven system. It’s not busy and flashy and unfortunately, newbie traders often mistake complexity as a sign of better performance and higher probability. However the reason old school technical analysis is still around is because it works, and plenty of experienced profitable traders use it in their own trading style. Other than lacking the excitement, old school technical analysis trading systems tends to have a lower success rate, which a lot of people are unwilling or unable to deal with. A lower success rate does mean the winning trades are typically very large, which makes the system profitable and worth learning as it gives you a solid foundation in learning the Forex markets.Price action trading strategies.
Now what you have been waiting for, I reveal the best Forex trading system you can learn is price action. Price action trading is the reading of the raw price action on a chart. The price is the most up to date information on the chart, so it will give you the most current situation when reading the chart. Price action as a Forex trading system is an incredibly simple method that is effective and functional as it works in both trending and ranging markets, with and against the trend. Learning price action can simplify your Forex trading and dramatically improve your results. With price action a trader has the advantage to trade any market on any timeframe, as price action setups are effective in all market conditions.Price action trading systems to learn:1. Pin Bar Setup.The pin bar price action Forex trading strategy is a reversal system. It is designed to trade tops and bottoms of markets and can also be used in trend continuation by buying dips in upward trends, and selling peaks in downtrends.2. Inside Bar SetupInside bars can be used very effectively when trading Forex. They are primarily used when trading strong trending markets as a trend continuation strategy.3. Engulfing Bar SetupEngulfing bars are great for trend reversals. They are rare, but a very strong price action reversal signal. Can be used when trading trends, but typically found at end of trend reversals.4. Fakey SetupThe fakey setup is a trend based trading approach that watches for a false breakout of an inside bar formation. This setup can usually be found at levels of support and resistance, very similar to the pin bar setup. Fakey’s are used to buy dips in upward trend, and sell peaks in downtrend.Price Action Trading Systems… Your First Step.
Do not get overwhelmed focus on a few price action trading strategies only. Trade these setups on a few different currency pairs. Grow your confidence. Become comfortable with identifying setups and really understand how to enter the trade step by step. Start with one price action Forex trading system and only when you are completely comfortable add another trading system.Conclusion.
It’s fair to say that so long as you stick to something like price action trading or old school technical analysis you can’t go far wrong. Be warned about all those different indicator systems out there in the forums, and make sure that you get your Forex trading education from a company with live trading results, and experienced traders.One of the biggest challenges inexperienced traders create is chopping and changing between different trading strategies. Choose a Forex trading system and strategy that matches your personality. It may take a couple of attempts, but once you find one that you like and can become consistent trading it, stick with it.