How Do You Spell "Commodity Trading"?

It's spelled D-S-H-H-U! Which means:

Develop the winning attitude.
Stick to your own rules.
Have your account at the right firm.
Have an "executable" approach.
Understand the difference between TRADING and INVESTING.

The business of commodity trading and futures trading can be as complex or as simple as you want to make it. (I make it is simple as I can for myself and you should too; there's no need to make it complex). But the one sure way to fail in trading commodities is to get into the business of trading without a plan. So here are some steps you can take to increase yoru chances for trading success.

1. Develop the winning attitude.

The most important element of any successful commodity trading plan is your own mental attitude. This is something you need total control over. Without the proper mind-set and the necessary mental attitude even the soundest of all methods will lead to lost money. A winner is more defined by his winning mental attitude then his winning methodology. This is why the trader with the winning attitude and a faulty approach can still produce positive results while the trader with the loser's mentality will stumble and lose money despite having an excellent trading methodology.

For example, how is it that one trader can use a commodity picking newsletter and consistently win, while another trader uses it and consistently loses?

What exactly causes one trader to play a commodity and win, while another absorbs the same information and loses? The difference lies in the mind. While most people make the mistake of assuming that winners are confident and certain because they win, the truth is that winners consistently win because they are confident and certain. No method, however sound, will work for the trader who mentally pictures himself losing even before each trade is placed. And no amount of money, however larger, will save the individual who secretly believes deep down inside that it won't work or he can't do it.

As choice making individuals we must use a higher set of thoughts when we trade. You can never fail, or even feel like a failure when you recognize the simple truth that you are not your results. You create them, which means that you possess the power to alter them if you happen not to care for them. The first step is to actually believe that.

2. Stick to your own rules.

One of the most beautiful things about commodity trading is the fact that we get to set our own rules. Here are some examples:

• Decide before you trade what your target price will be, what your maximum loss will be, and stick to your own parameters.
• Never allow yourself to lose more on a trade than you would allow yourself to make.
• Decide how much time you are going to spend researching trading ideas.
• Decide how much money you will allocate on each trade.

In short, think about every possible scenario before you trade and decide what you will do in each scenario before it happens. This allows you to keep your emotions out of the process. Here is a small list of some possible trading rules: ...

3. Have your account at the right firm.

It is extremely important to have your account at the right brokerage firm. The firm you choose should allow you to do everything you want, like options, provide you with good research, great trade executions, etc. Be sure to negotiate for the lowest trading rate as possible becuase this allows you to experience better profits. We HIGHLY recommend a rate of $2.50 per turn and only know of one firm that offers this rate. CLICK HERE to discover how to trade for only $2.50 per turn. There are no account minimums or trading minimums. The fee includes broker assistance and they also have an incredible money back guarantee

4. Have an "executable" approach.

All great traders have only 2-3 great commodity trading strategies they use to make most of their money. It may sound strange but it's true. Most professionals just do the same thing over and over to make consistent short term and long term profits.

While technical analysis is the cornerstone of how we trade successsfully. It's easy to get too deep into technical analysis. I see people fall into that trap all the time. The reason is that when we look at the market it looks and seems confusing so we grasp at technical analysis to help us make sense of it. Then you discover that you need more technical indicators or something and the process of laying on layer after layer of technical analysis begins. In the end you'll come to understand that there is no "magic" technical approach to winning consistently in the market. And you don't need it.

Our approach is executable, simple, straight forward and highly profitable. If you are going to trade by way of techincal analysis. Don't rely too heavily on the 1001 technical analysis tools out there. Most of them are garbage anyway. While it's okay to use techincal analysis. You don't want to overdue it. Simply find the right handful of technical tools and work with those. The market is so profitable to trade it's almost ridiculous. There are several great trading opportunities that happen EVERY DAY. This is a real traders market. So, find a system that works (like ours) and work the system.

5. Understand the difference between
TRADING and INVESTING.

We trade to produce "cash flow" from the market. We never get married to one particular commodity but rather stay married to the idea of making money by building profits when they present themselves and manage losses. Managing is a key element to your success. As hard as it is to give some back to the markets (take a loss) it's crucial that you do it. Your very survival as a trader depends on it.

Develop a sound commodity trading plan that will help you will avoid the most common downfall of all - turning a LOSING trade into a long term hold. It's a deadly mistake. Cut the losses and move on.