Trading Tips

‎ Trading Tips

‎ I frequently remind readers that the vast majority of traders lose ‎money. Statistics show that most traders lose the bulk of their capital in the first year and ‎typically give up. Some continue to hang in there and acquire a lot of market knowledge, ‎yet they continue to struggle to be consistently profitable. Yet there are a small group ‎who make it and they consistently outperform everyone else. Why is this? ‎

‎ Mark Douglas, author of Trading in the Zone, writes “…there are ‎countless reasons. But if I had to distill all of the reasons down to one, I would say that ‎the best traders think differently than the rest”. Douglas concludes that successful ‎traders develop “a unique set of attitudes that allows them to remain disciplined, focused, ‎and above all, confident in spite of the adverse conditions”‎

‎ If Douglas is correct (and I believe he is), then the search for the ‎secret indicator or secret system sends traders down the wrong path. As I teach in my ‎course, there are 3 essential elements you must have if you seriously wish to learn how to ‎trade commodities:‎

• An effective method
• Risk Management
• Discipline, meaning all aspects of trader psychology.‎

‎ Most people believe if they only had the method they would become great traders. ‎Douglas believes the third issue of psychology is truly what separates the winners from ‎the losers.‎
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‎ If you are not as successful as you wish to believe, today’s trading tip is intended to ‎make you refocus on these essential fundamentals of trading.‎

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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