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Stock and Commodities- Learn to Trade

To begin, before one tries to learn to trade. They need a hard look in the mirror. How to learn to trade for many is probably one of the hardest things to do. The reality is that most new traders fail. Something like 90%+. Not to make it too simplistic, in order to learn to trade one must look at fear and greed. Both of these too attributes are the root cause of failure for traders. For many traders greed is a stronger emotional force than fear.

Greed causes us to do that which we should not.We must have a trading plan and with greed we feel we do not need it! Greed causes us to jump the gun, to hold on too long, to buy too much. Greed causes us to think we must be right!

Fear is the opposite. When trying how to learn to trade fear can overwhelm us. Our fears cause us to not do what we should do. We stay in a position to long or we average down losses. These are cardinal sins to commodity traders.

Fear is prohibitive – it stops us from doing the right thing in the stock market or commodity markets.

For some unexceptionable stupid reason, we pass on the best or largest winning trades out of fear. We don’t place stops for fear we will be stopped out.

On the other hand successful trend followers- They do just do it, as Nike says! There is no fear or greed. Just follow the plan and put the trades on. Lets see what happens. They accept the inherent risks while trading.

Fear is the product of unknowing or not having a trading plan. Think of how many people do not have a trading plan. Do you? Do you know how much of a market to buy or sell. Do you even know which market to buy or sell. Do you know where to get out with a profit or a loss?????

Traders are not so well prepared. If they want to succeed overtime in the stock market or the commodity markets they need to be prepared. Too many novice traders have not thought out the future, they trade with no stops (protection) and trade with no idea of where or how to take profits. All of the future is unknown. They are at the whim of the markets.If one has stops and knows that any trade is 50/50 as well as accepted the risk, they just let the probabilities fall where they may. They accept loses and know they are part of the game.

Do you accept your losses? Do you have a plan?

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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