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Online Commodity Trading

Written by ForexCult Team
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Online Commodity Trading In the following article, I would like to tell you about the twelve golden rules for successful trading. However, you should know before you consider online commodity trading that it is not for everyone because of the fact that the actual degree of the leverage that is available can actually lead to great profits not to mention great losses as well. You should also keep in mind that your performance in the past is not an indicative of what the future results will be. The first of the twelve golden rules is to adopt or take in a trading plan that is based on your personal personality. Due to the amount of stress that you are going to have to deal with emotionally and that you are going to encounter in online commodity trading, you as the trader must be able to possess a predetermined plan of operation that also includes a certain list of rules that you are to operate and also adhere to so that you are able to protect you from your self. It is very common for your emotions to tell you to actually do something that is totally absurd or also way away from what your actual trading schedule should be. Online Commodity Trading and Being Sure The second of the twelve rules that you should know about is that if you are not sure about the trade that you shouldn’t trade at all. If you find you’re self in a certain trade that you feel that you are unsure of you should accept your personal loss or on the other hand you should try to secure or protect your profit and then in return stop. If you find that you are in an uncertain situation you may find that you will be highly influenced by a great area of extraneous as well as details that are totally unimportant and you will actually end up taking what is known as a loss. The third rule out of the twelve rules is that you should know that you are right at least forty percent of the time that you are trading and you should still be able to show some rather handsome profits. When it comes to speculating trades, it would be absolutely crazy to think that you should be right all of the time. If you are an individual that has had the opportunity to learn proper trading techniques, you should actually be able to cut your losses short and also let your profits run. Online Commodity Trading and Cutting Your Losses When it comes to the fourth rule of online commodity trading, you should know that it is that you should deal with your losses and also let your profits stick it out. The main fault of speculators when it comes to online commodity trading is that the speculators are not able to put a limit on their losses when they should be able to. If they can put a ending on their profits, they should be able to put a ending on their losses as well. However, the truth of the matter is that a man in particular hates to admit when they are wrong and in many cases this gets them into a lot of trouble. Speculators in the online commodity trading often are known to let their losses ride and they become larger and larger in the hopes that one day they will turn around and prove the speculator to be correct. Then after time passes, the speculator that is involved in the trading begins to forget about the profits and begins to just hope for smaller losses in general. You know there is a old saying that all traders should go by and that is the saying that states you never go broke by taking a small profit. However, you will never actually get rich that way either. Online Commodity Trading and Losing The fifth rule is that if you as the trader are not able to afford to lose then you cannot afford to win either. As I stated earlier, losing is actually a natural part of the trading market. Sometimes you are prone to win and other times you are prone to lose, you never know what is going to happen. The sixth rule of online commodity trading is that you should not trade in to many markets. As you know when it comes to online commodity trading, it is often hard to be able to trade successfully and it is also hard to understand the market as well, that is why it is not advisable for you as a trader to trade in all of the markets at one time. It takes a lot of time to actually learn one market so there is no way that you can afford to be in more than one.