In commodity trading, there is no such thing as a “lucky trade”. It takes a lot of time, effort and investment in order for you to be a smart trader. There are no easy shortcuts and you should know by now that in order for you to become successful in this type of business, you need to improve your knowledge about trading and at the same time, be aware about the world market and economy. The good thing is, there are rules to follow in order for you to become a successful trader or perhaps a commodity broker.
Build A Definite Trading Plan
You may encounter stress and pressure because of the speculative situation. But this should not stop you and you must have predetermine method of operation. Building a definite plan allows you to follow set of rules sticking to your plan. One of the most common mistakes of traders these days is the fact that they will change their trading plan decisively from one strategy to another. Very often, your emotion will be part of the overall commodity cash trading plan and this should not be. By adhering a definitive formula that you must eliminate emotional temptations and stress.
If You Are Not Sure – Don’t Trade
There are times that you feel unsure of yourself. This is quite helpful in order for you to avoid loss and protect your profit in the long run. If your gut does tell you that it is an unsure situation when it comes to trading, then it is obvious not to trade after all. Keep in mind that when in doubt, there is a chance that you will not think properly and you will be influenced by those unimportant details. Yet, you also have to bear in mind about the saying, if you cannot afford to lose you cannot afford to win. Losing is a natural thing. But, if you are not in a position of losing, then better not to trade. But again, it is all about the learning process. Commodity future trading should always be done by surplus fund that should not affect your daily expenses.
Do Not Trade Too Many Markets
Winning trade is not like a raffle draw – the more entries the more chances of winning. It is not like that. Keep in mind that most professional traders understand a specific market. It is next to impossible when a beginner like you to successfully trade in several markets. In order for you to trade successfully, the fundamental trade information is necessary and these are the technical and psychological aspects. A few markets allows you to study more about the trading market information and gives you the ability to accumulate in different angles and situations. Oh, by the way, you should not trade in a market that is too thin. A lack of participation in this kind of business will lead you into trouble.
Never Try To Buy The Bottom And Sell The Top
This is the type of situation which can’t be done unless if you have a time machine and go back to the present time. It is wise to wait for the Commodity Basis trading trend and develop a trading plan as mentioned to rule number one. Take the advantage of waiting once your trading plan is established and bring home the bacon.
Commodity Basis 