Bad Commodity Trading

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Bad Commodity Trading

Bad commodity trading habits lead to bad commodity trading results. Beginning traders will often start with simulation trading and they will do great. When they switch to real time commodity trading the same folks who posted record profits in the simulation world will crash and burn. There are a number of reasons for on onset of bad commodity trading and these reasons are not just limited to beginners. Trading psychology has a lot to do with good habits turning into bad commodity trading habits. The old enemies of commodity trader, greed and fear, are not a problem when trading is not “for real” but raise their ugly heads at the thought of making or losing real money. To help avoid bad habits that lead to bad commodity trading it is useful to take Commodity and Futures Training. It is also very wise to learn, practice, and use the time honored technical analysis tools that made rice traders rich in ancient Japan. Candlestick basics originated over three hundred years ago and this very insightful, very visual system of following the commodity market can lead to very positive results. Using Candlestick charting techniques and Candlestick trading tactics can help the trader stay away from the bad habits that creep into the best commodity trading strategy.

Simulation or “paper” trading is basic to learning commodities trading, options trading, stock trading and the like. Trading software will have historical data that will allow the trader to work in “real life” trading situations. Using the time and psychological space afforded by these practice sessions the savvy trader will develop a sound trading strategy that can carry over to live commodity trading. Experienced traders will typically trade the same in simulated settings as they do in live trading. The trap that will lead inexperienced traders into bad commodity trading decisions is the impulse to “wing it” once in a live situation. Here is where the use of a tried and true set of technical indicators is necessary. Here is where learning the indicators and using them is critical. Use of Candlestick pattern formations to predict the commodities price movement has worked for over three centuries.

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Bad Commodity Trading

  1. 1. Bad Commodity Trading By www.CandlestickForums.com
  2. 2. Bad commodity trading habits lead to badcommodity trading results. www.CandlestickForums.com
  3. 3. Beginning traders willoften start with simulation trading and they will do great. www.CandlestickForums.com
  4. 4. When they switch to real time commodity trading the same folks who posted record profitsin the simulation world will crash and burn. www.CandlestickForums.com
  5. 5. There are a number of reasons for on onset of bad commodity tradingand these reasons are notjust limited to beginners. www.CandlestickForums.com
  6. 6. Trading psychology has alot to do with good habits turning into badcommodity trading habits. www.CandlestickForums.com
  7. 7. The old enemies of commoditytrader, greed and fear, are not aproblem when trading is not “for real” but raise their ugly heads at the thought of making or losing real money. www.CandlestickForums.com
  8. 8. To help avoid bad habits that lead to bad commodity trading it isuseful to take Commodity and Futures Training. www.CandlestickForums.com
  9. 9. It is also very wise to learn, practice, and usethe time honored technical analysis tools that made rice traders rich in ancient Japan. www.CandlestickForums.com
  10. 10. Candlestick basics originated over three hundred years ago and this very insightful, very visual system of followingthe commodity market can lead to very positive results. www.CandlestickForums.com
  11. 11. Using Candlestick charting techniques and Candlestick trading tactics can help thetrader stay away from the badhabits that creep into the best commodity trading strategy. www.CandlestickForums.com
  12. 12. Simulation or “paper” trading is basic to learning commodities trading, optionstrading, stock trading and the like. www.CandlestickForums.com
  13. 13. Trading software will have historical data that willallow the trader to work in “real life” trading situations. www.CandlestickForums.com
  14. 14. Using the time and psychological space afforded by these practice sessions the savvy trader will develop a sound tradingstrategy that can carry over to live commodity trading. www.CandlestickForums.com
  15. 15. Experienced traders willtypically trade the same insimulated settings as they do in live trading. www.CandlestickForums.com
  16. 16. The trap that will leadinexperienced traders into bad commodity tradingdecisions is the impulse to “wing it” once in a live situation. www.CandlestickForums.com
  17. 17. Here is where the use of a tried and true set of technical indicators is necessary. www.CandlestickForums.com
  18. 18. Here is where learning theindicators and using them is critical. www.CandlestickForums.com
  19. 19. Use of Candlestick pattern formations to predict the commodities pricemovement has worked for over three centuries. www.CandlestickForums.com
  20. 20. When the inexperienced trader enters into the real world ofcommodities trading is the time toapply what he or she has learned about the use of Candlestick analysis and not to forsake it. www.CandlestickForums.com
  21. 21. An excellent rule for abeginning trader to follow is that if you don’t understand the trade, don’t get into it. www.CandlestickForums.com
  22. 22. Commodity trading is not gambling. www.CandlestickForums.com
  23. 23. Because trading history repeats itself the useof Candlestick patterns gives the trader a very reasonableexpectation of making a profit on a trade. www.CandlestickForums.com
  24. 24. What is required is thediscipline to apply what is known at the right time. www.CandlestickForums.com
  25. 25. Using a well thought outtrading strategy will leadto profits. Using the right tools to make a profitreinforces the use of the strategy. www.CandlestickForums.com
  26. 26. When the trader loses money on a trade when he or she did not expect to it is time toreevaluate trading strategies, not to wing in on the next trade. www.CandlestickForums.com
  27. 27. Practicing good trading habits leads to good commodity trading andletting fear and greed get in the way leads to bad commodity trading. www.CandlestickForums.com
  28. 28. Good trading goes with good management of investment risk. Setting limits andkeeping track of both success and failure will lead to good long term results. www.CandlestickForums.com

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