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If you're looking for a solid strategy in trading, you want some highly probable risk/rewards, some strong money management and some direct, smart adjustments. How can you find all that in the world of commodity futures trading? Especially if you're looking for success in the agricultural futures business, what do you need to remember?

## Figuring Out Commodity Futures Trading

It's important to have a sound system and strategy with any commodity futures trading. A solid strategy is known as "trend-following swing-trading." This is where you follow the trend in your market and only trade in the direction of your market trend. For instance, if gold is in an up-trend you buy long. If it's trending down, you sell short. No trend bucking or counter intuitive trading needed, just discipline and a sound systematic approach.

## When to Make Decisions

The proper time to make a decision is before it needs to be made. This is commonly known as "planning." Decisions made on investing in commodities should not be made on a spur of the moment basis or in an emotional way. Using a system which is pre-planned, it only takes proper execution on the trading day; as the decisions have already been made. This is key for long term growth and the difference between the "picker/chooser" mentality and the professional approach.

## What About Risk?

The idea of a give/take is fundamental to making any money in a market of any kind. When you're only fixated on gains and can't suffer even the smallest loss, the standard fluctuations in any market will cause you to give up your strategy far too early --- erasing whatever long-term gains you stood to get out of the system. Think of surfing: there are long waves that you ride to the end, and then you sit and wait until a new one comes. You aren't always on top of the wave.

Being a great trader is simple --- you make decisions beforehand, with discipline, and you manage your risk. Understanding the inner workings of commodity futures trading is difficult, and there are always some ups and downs to deal with. But along with some hard work and due diligence, you can reach your planned goals with a minimum of bumps along the way. You'll need guidance and help throughout, but sticking to your plan and your values will get you there better than any short game ever will.

by: Carol Miller.




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