Trading Commodities Can Make You a Fortune
There is no question that you can become wealthy trading commodities
, or if you will, the futures market. I have traded nearly every possible commodity, including grains, metals, currencies, energies, and all the others. I have been quite successful. The key to this success is knowledge.A great example of knowledge is understanding, and then implementing seasonal tendencies into your overall analysis. My experience tells me that commodities follow a seasonal trend. This is an essential tool to help you forecast price movements. You need to make an analysis of the commodity you are interested in. Is it following a normal seasonal price pattern? Once you establish this, you have a major clue to work with. As an example, soybeans tend to make a seasonal low in October. Watch for a trend reversal around that time. Seasonal tendencies work best in the grains market. This is only one example of the knowledge required to build a solid foundation to achieve success, trading the commodities market.
Amazingly, over 90% of all commodity traders ultimately lose. This means that 5-10% are making most of the money. Why does this happen? How does one get into this elite trading group that makes fortunes? Let us examine a few of the answers to these questions.
A major reason many people lose money trading any market, is because they tend to follow the advice or opinions of someone, who in reality, does not have a clue, when it comes to successful trading. You need to implement a proven trading plan, and do your own research and analysis.
Normal human nature tends to be detrimental for most people who venture into the trading business. Many times you must do the opposite of normal human nature, to be successful trading the markets. The golden rule of, cutting your losses short, and letting your profits run, goes directly against normal human nature. Successful trading requires you to eliminate emotions, such as greed, fear, and hope, from your overall trading process. Never underestimate the importance of psychology when it comes to trading or investing.
What I have talked about in this article is only the tip of the iceberg. A successful trading education is a long process to say the least. It requires learning the proper strategies, methods, and principles. Becoming a trading master also means, you must understand, and then implement, proper trading psychology. Fortunes are made trading the commodities market. You will need to put the time and effort in, to achieve great success.
Trading Commodities Can Make You a Fortune
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