Sept 27: How To Win As a Commodity Trader With This Simple Tactic

by David Jenyns on September 27, 2005

Surprisingly, many profitable speculators have success rates between 30% and 50%. Commodity traders are not successful because they predict prices well. They`re winning because their profitable trades far exceed their losses. The truth of the matter is all Commodity systems win and lose.

Psychologically, this can make following a system difficult. Commodity trader professionals achieve success in this environment by controlling risk with money management rules. But, controlling risk goes against our natural tendencies. Most Commodity traders don`t want to manage risk, they want to be right. Despite the proven fact that money management is so important, when Commodity traders first come to me, many of my clients focus their time looking for the perfect entry. It`s their search for the Holy Grail. They want a perfect Commodity indicator.

Not only is this Commodity indicator going to get them in right at the bottom of the trend, but it`s also going to tell them at the exact point at the top of the trend when to get out. Here`s the best part and about this indicator: apparently, it can guarantee success and it`s never, ever wrong.

Unfortunately, though I don`t like to disappoint my clients, I need to let them know the hard truth. It does not matter whether you are trading in the Commodity or any other market, the simple fact is this; there is no perfect indicator. Instead, there are carefully set money management rules that will place you in control. With this control, you`ll be able to follow the two cardinal rules in your Commodity trading – you`ll be able to let your profits run and cut your losses short.

Once these money management rules are in place your system can be set on autopilot. You won`t need to worry…

`Should I be holding this stock?`


`Shouldn`t I be holding that type of stock?`

This uncertainty is what people are confronted with when they don`t have their rules set for the Commodity market. The end result is that small losses end up being big losses.

To make matters worse, a few of these big losses strung together can have a detrimental effect on your Commodity trading capital. Unfortunately, it`s much more difficult to trade to gain back money you have lost then it is to trade with profits that you already have in hand. If things go to the absolute extreme, you run the risk of wiping out your entire Commodity trading float, as many traders do when they first get started. But, with your money management rules in place, you can ride out the ups and downs of every Commodity trader has a trading system and succeed where many fail.

David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.

His most recent course Trading Secrets Revealed is a step-
by-step trading roadmap to having excellent money management.
Learn how *you* can become one of his students.
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