Five Easy Steps to Futures Trading Commodities

STEP #1. Scan the markets for potential trade setups

Using whatever software or advisory service of your choice, be sure you take the time to scan EVERY market for it's trade and profit possibilities. Many times traders have favorite markets, like trading soybeans or corn. So, that's all they will look for. While they have the equity to trade markets like cocoa and sugar, they don't and they miss many great opportunities.

So make a list of ALL of the markets you can comfortably trade. Then scan these markets EVERYDAY using your software tools or going over the list sent to you via your trade advisor.

If you're a Chart Trader, this strategy is very easy and can be done quickly by simply checking your daily Trend Monitor. Be sure to check each category of signals and understand their meanings. This will allow you to make note of the most powerful high profit potential set ups as presented by the Trend Monitor.

If you're not a Chart Trader, then it's important for you to take the time to go over whatever trade data is sent to you from your Trade Advisory of choice or print it out from whatever software package you are using.

STEP #2. Pre-screen Trades

After you have identify potential trades through proper scanning of the markets. Do a pre-screening prior to accepting any entries. The only way you can properly pre-screen any trades, is to have a concisely WRITTEN Trading Plan like we make sure each Chart Trader has. This becomes like your blueprint, your compass and your road map for trading success.

Every properly written trading plan contains components that protect both you and your equity form engaging in markets that don't fit your risk profile and growth desires

The reason top traders are able to succeed in the face of all odds and continue to win big - consistently, is because they have filters that automatically keeps them out when they should be out and keeps them in the markets when they should be in.

We aren't talking about some nifty software programs or indicators you may be running or the advice given to you by some advisor. We are talking about a personal, methodically written trading plan that ONLY YOU can put together.

Your WRITTEN Trading Plan is your overall starting point and acts also as your check point to make sure you are on track and stay on track. In fact it's highly recommended that new traders have their written trading plan in place prior to evenng an account with a broker. If you are actively trading commodities already. It's best to stop where you are and put together your plan. We will show you in a few minutes how you can do that.

So, regardles of the trades potential for gain or loss, the key here is to filter out the available trade entries based on your written trading plan.

The Chart Traders have very specific rules that apply under all circumstances in all markets at all times. This has been a major key to their success.

We are talking about traders who have taken starting equity like $5,000.00 and have turned it in to over +$100,000.00 in net realized profits AFTER, slippage and losses... all in under 5 months - and still going strong today. Not just one trader, not even three traders.

We are talking about dozens of commodity traders. We will show you how to get in contact with these real world traders, making real money trading commodities.

STEP #3. Enter Trades

Being a successful and profitable commodities trader has nothing to do with popularity. In fact, with more than 95% of traders lossing their equity to the other 5% minority. One should be very cautious of the mass populated systems, software and advisories. Most popular systems lose money consistently, yet they still advertise how effective it is. Okay, maybe they are effective. Effective in quickly flushing your equity down the toilet.

It can only be true that those who do trade with success rarely share what they know. Yet, for the very few of the successful commodities traders who do share what they know, they are hard to find. When and if you do find one, it will certainly cost you a hefty sum to be a part of their winning team.

These services will also provide you with direct contact to their current traders with them. No just one, not five or ten. But they usually have dozens of CURRENTLY-ACTIVE and successful traders.

...and get this...

These traders are MORE THAN WILLING to speak with you. These successful commodities traders and services won't talk about what they have done... they will talk about what they are DOING. Not that they have anything to hide. It's just that what they lost or gained makes no difference.

Understand this fact and you will no longer be selling yourself on the past when selecting services and software. Always look for a commodities advisory service or commodity trading system that is having success TODAY! Right NOW! Forget about the backtesting... forget about last years results... forget about anything that has nothing to do with TODAY'S RESULTS!

The reason why is simple. The past doesn't equal the future. Even the CFTC (Commodity Futures Trade Commission) and NFA (National Futures Association) make it a requirement that all Commodity Trading Advisors make note to you that "past performance is not necessarily indicative of future results. The risk of loss exists in futures trading".

Yet, even with this public warning many traders buy systems, software and sign up for advisories based on past performance. Then they want to file complaints with the CFTC and point the figure at the closes warm body for the losses they inccured.

Stop buying into that back testing and the "hey we made such and such an amount in 1998" ... that's bull. Who cares what they did... The question is WHAT ARE THEY DOING NOW? As soon as some one wants to flash you some past results and in the same breath give a bunch of excuses as to why they are lossing big today... RUN-JOE-RUN!!!!!!

Now, don't get us wrong. Everyone one gives back to the market. No one is perfect in this game. You will always have your trades that give back to the market. Regardless of how much money you are making. With that said, there's a BIG difference between giving back to the market, and giving EVERYTHING to the market... and then some.

So, in this 3rd Step, it's important just as in Step's #1 and #2 that you have a reliable method of trading commodities. A solid system of generating entry and exit signals for trading commodities will bring strength to your written trading plan. In fact you can sign up for our FREE Daily Trades if you are in need of a solid system of trading.

So assuming you have this system of trading commodities already in place. Once you have solidified which trades are acceptable via your WRITTEN Trading Plan, at this time you should place the trade according to the instructions via your commodities trade advisor or commodity trading system.

STEP #4. Monitor Trades

After your trade has been successfully entered you should then follow it on a daily basis. The Chart Traders Service provides a very detailed tool everyday called the Trend Monitor. This allows for our commodities traders to easily and efficiently follow everytrade while at the same time scanning the markets for new commodity trades.

You need to keep a daily record of your trades and be sure to contact your broker or use your online commodities trading software to enter updated protective stops and take the appointed action instructed by the Trend Monitor (if you are a Chart Trader) or your commodities trading system of choice.

STEP #5. Close Trades

One thing that all successful and profitable commodities traders have in common, is the ability to stick with their commodities trading plan. Simply put.. DISCIPLINE! You should not exit a trade before or after your system of trading says to do so. Don't let your emotions get in the way. It's very easy for fear, greed and confusion to sabotage your trades. By always taking action before or after you are suppose to, you are not allowing yourself to develop the neccessary discipline to be a successful commodities trader.

If the system of trading you're using gives you bad signals and tend to lose all of the time even when you follow as you're suppose to. Then guess what? Don't give up. Toss that system in the trash. Then take your time, do some research. Interview some new advisory services and look for a new team to join.

It doesn't matter how much you see the markets moving. You can count the money you "WOULD'A" made all you want. If you really could'a-would'a been making that money, you wouldn't be looking for a new system of trading. So get over it.

The markets aren't going anywhere. Profit opportunities exits all of the time. You will not be missing anything. Your priority should be to make sure you have a strong foundation in both your written commodities trading plan as well as a strong system of trading that's profitable to those using it.

Anything short of that... yes... it's a gamble and you would be better off in Vegas.

Successful commodities traders, as is all traders, are exposed to risk in trading commodities. The difference is that successful traders have a better way of consistently calculating the risk, limiting exposure and optimizing entries and exits for maximum profits.

So, when it comes to exiting. Assuming you have a strong written commodities trading plan along with a strong system of profitable trading. At the time stated via your system of choice and at no other time other than this. You should exit your position.

Again, to optimize your returns, you need to keep strict discipline and follow the Trend Monitor if you're a Chart Trader or the exits strategy via your commodities trading system. Under no circumstances whatsoever should you be exiting (or entering) any trades until then. Once your commodities trading system gives you your exit cue, at this time you will close the trade.

Trading Commodities in 5 Easy Steps

So, here are your 5 easy steps to trading commodities...