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. 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. |
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In fact it's highly recommended that new traders have their written commodities trading plan in place prior to evenng an account with a broker. If you are actively engaged in commodities trading already, it's best to stop where you are and put together your plan. 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 plan. Commodities Trading STEP #3. |
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A futures trading plan is a must. This plan might specify such things as: which markets to follow, number of contracts to trade at any one time, profit goals per week, month, or year, and maximum loss allowed per trade. Without these rules emotions such as greed may take over when, for instance, a position is profitable. Greed could turn to despair when prices turn around and the trader refuses to exit the market, in hopes that prices will become favorable again. |
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You will be shown how to take this list and put it through our 3 step selection criteria process, with graphic examples to show you how it is done. |
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But if you've ever traded you know how your own mind can work against you when it comes time to sell at a loss. You'll start rationalizing why you shouldn't sell - "it will come back", "it's just moving around", "I'll sell when it comes back to the price I paid", take your pick of excuses but none of them are the right way to think - and the next thing you know you've got a nightmare loss on your hands. Everyone has had this happen to them in the learning stages. |
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Most people consult with their accountant, financial planner, or spouse or maybe even just decide for them selves based upon some percentage of their total net worth. If you ask your accountant or financial planner he or she will tell you based on your total financial picture. Your spouse will most likely take a more conservative view. But the number your accountant, financial planner and spouse come up with is only part of the equation. |
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This becomes like your blueprint, your compass and your road map for trading success. Every properly written commodities trading plan contains components that protect both you and your equity from 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. |
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I don't know if that's true but it's worth considering as you read the rest of this article. Before you can develop these 7 habits you must first understand the Trader' s Mentality. |
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You can download the entire Index Adjustment System right now for only $39.95. That's less than what it costs to eat dinner at a decent restaurant. We're only testing the price of the Index Adjustment System at this low level for a few days. We will be raising it shortly to $97.95. |
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