Bad Commodity Trading

28
Bad Commodity Trading By www.CandlestickForums.com

description

www.candlestickforum.com 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.

Transcript of Bad Commodity Trading

Page 1: Bad Commodity Trading

Bad Commodity Trading

By

www.CandlestickForums.com

Page 2: Bad Commodity Trading

Bad commodity trading habits lead to bad

commodity trading results.

www.CandlestickForums.com

Page 3: Bad Commodity Trading

Beginning traders will often start with simulation trading and they will do

great.

www.CandlestickForums.com

Page 4: Bad Commodity Trading

When they switch to real time commodity

trading the same folks who posted record profits in the simulation world will

crash and burn.

www.CandlestickForums.com

Page 5: Bad Commodity Trading

There are a number of reasons for on onset of bad commodity trading

and these reasons are not just limited to beginners. 

www.CandlestickForums.com

Page 6: Bad Commodity Trading

Trading psychology has a lot to do with good habits

turning into bad commodity trading habits.

www.CandlestickForums.com

Page 7: Bad Commodity Trading

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.

www.CandlestickForums.com

Page 8: Bad Commodity Trading

To help avoid bad habits that lead to bad

commodity trading it is useful to take Commodity

and Futures Training.

www.CandlestickForums.com

Page 9: Bad Commodity Trading

It is also very wise to learn, practice, and use

the time honored technical analysis tools that made

rice traders rich in ancient Japan.

www.CandlestickForums.com

Page 10: Bad Commodity Trading

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.

www.CandlestickForums.com

Page 11: Bad Commodity Trading

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.

www.CandlestickForums.com

Page 12: Bad Commodity Trading

Simulation or “paper” trading is basic to

learning commodities trading, options

trading, stock trading and the like.

www.CandlestickForums.com

Page 13: Bad Commodity Trading

Trading software will have historical data that will

allow the trader to work in “real life” trading

situations.

www.CandlestickForums.com

Page 14: Bad Commodity Trading

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.

www.CandlestickForums.com

Page 15: Bad Commodity Trading

Experienced traders will typically trade the same in simulated settings as they

do in live trading.

www.CandlestickForums.com

Page 16: Bad Commodity Trading

The trap that will lead inexperienced traders into

bad commodity trading decisions is the impulse to

“wing it” once in a live situation.

www.CandlestickForums.com

Page 17: Bad Commodity Trading

Here is where the use of a tried and true set

of technical indicators is necessary.

www.CandlestickForums.com

Page 18: Bad Commodity Trading

Here is where learning the indicators and using them

is critical.

www.CandlestickForums.com

Page 19: Bad Commodity Trading

Use of Candlestick pattern formations to predict the

commodities price movement has worked for

over three centuries.

www.CandlestickForums.com

Page 20: Bad Commodity Trading

When the inexperienced trader enters into the real world of

commodities trading is the time to apply what he or she has learned

about the use of Candlestick analysis and not to forsake it.

www.CandlestickForums.com

Page 21: Bad Commodity Trading

An excellent rule for a beginning trader to follow

is that if you don’t understand the trade,

don’t get into it.

www.CandlestickForums.com

Page 22: Bad Commodity Trading

Commodity trading is not gambling.

www.CandlestickForums.com

Page 23: Bad Commodity Trading

Because trading history repeats itself the use

of Candlestick patterns gives the trader a very reasonable

expectation of making a profit on a trade.

www.CandlestickForums.com

Page 24: Bad Commodity Trading

What is required is the discipline to apply what is known at the right time.

www.CandlestickForums.com

Page 25: Bad Commodity Trading

Using a well thought out trading strategy will lead to profits. Using the right

tools to make a profit reinforces the use of the

strategy.

www.CandlestickForums.com

Page 26: Bad Commodity Trading

When the trader loses money on a trade when he or she

did not expect to it is time to reevaluate trading strategies,

not to wing in on the next trade.

www.CandlestickForums.com

Page 27: Bad Commodity Trading

Practicing good trading habits leads to good

commodity trading and letting fear and greed get in the way leads to bad

commodity trading.

www.CandlestickForums.com

Page 28: Bad Commodity Trading

Good trading goes with good management of investment

risk. Setting limits and keeping track of both success and failure will lead to good

long term results.

www.CandlestickForums.com