Make Fortune by Trading Commodities
There is no question that you can be rich trade raw materials, or if you will, the futures market. I have almost every possible commodities, including grains, metals, currencies, energies, and all others traded. I have been very successful. The key to this success is knowledge.
A great example of knowledge is insight into, and then the implementation of seasonal trends in your overall analysis. My experience tells me that raw materials a seasonal trend. This is an essential tool to help you prediction of price movements. You must create an analysis of the product that you are interested in. It Is after a normal seasonal price pattern? Once you have this, you have a great idea to work with.
As an example tend to a seasonal low point in October soya beans. Look for a reversal of the trend around that time. Seasonal trends work best in the market for cereals. This is only one example of the knowledge needed to build a solid foundation to achieve success, the raw materials market trade.
Amazingly, more than 90% of all commodity traders ultimately lose. This means that 5-10% make the most of the money. Why does this happen? How does one get in this elite group that fortunes makes trade? Let’s look at a few of the answers to these questions.
A major reason many people lose money trading any market, because they tend to follow the advice or the opinions of someone, which in reality does not have a clue when it comes to successful trading. You must implement a proven trading plan, and do your own research and analysis.
Normal human nature tends to be harmful for most people who venture into the trading activities. Often you must do the opposite of the normal human nature, successful trading the markets. The golden rule of, go cut your losses short and let your profits run, directly against normal human nature. Successful trading you must eliminate emotions such as greed, fear and hope, of your total trade process. Never underestimate the importance of Psychology when it comes to trade or invest.
What I’ve talked about in this article is just the tip of the iceberg. A successful trading education is a long process to say the least. It requires learning the right strategies, methods and principles. A trading master also means you need to understand, and then implement, good trading psychology. Fortunes are created the raw materials market trade. You must put in the time and energy, to achieve great success.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.