8 Steps and Tips To Become A Successful Trader
Step 1: Get yourself a Commodity Trading e course or training tutorial
Begin with a training tutorial first so that you can understand the basics of trading as well as how the commodities trading market works.
Step 2: Open a FREE PRACTICE DEMO account with a broker.
This is a practice account with which you can place paper trades and test your strategies before implementing them on a real account.
Step 3: Get a Commodity Trading plan
After you have gone through the training tutorial you'll probably know how a commodities system works & how to come up with a plan. This plan you should continue trading with it on your practice commodity account. Practice it on the demo, Practice practice makes better.
Step 4: Demo practice for about a month until you get used to your system.
If you have not mastered your plan on practice practicing then you can open a live account and begin trading the real market. Keep practicing until you've mastered your plan.
Step 5: Implement commodity money management an Commodity Trading psychology
This is an important step & make sure you read Commodity Trading psychology tips and commodity money management guidelines and implement these proper commodity money management guidelines.
Step 6: Open a LIVE account
You should already be quite consistent in your practice when you reach this step. Move on to a standard commodity account and open a well capitalized capital to increase your chances of profitability.
Step 7: Increase your Profits
Increase your lot size slowly as your skills improve. You may want to increase it when you've 30% returns on investment in your trading account. Refer to the commodity money management guidelines and learn how you can keep increasing your lot size.
Step 8: At this point in time you are a successful trader if you are making consistent profits every month.
You don't have to be an institutional trader to be successful. And then you can start planning & considering to be a full time Commodities trader from here onwards.
The above steps might sound easy but they are not easy at all. So you really have to focus on the learning, discipline, psychology, & commodity money management sectors before you can be successful.
5 Steps to Starting
Previously online commodity used to only be available to big corporations and the very rich individuals. It is in the online commodity market that investors and other participants buy & sell commodity trading instruments over an interbank network. The goal being to make money from the commodities trading price movements.
The commodity rate floated in the online commodity keeps shifting every now and then. Commodities Prices keep rising & falling. It is a complicated way of placing trades for beginners, but for those who have learned & have experience in Commodities, it is a great way to earn money.
You might want to begin commodity because you also want to earn profits from these movements while you do other regular things you do. You may be envious of your rich friends who are making money even though they do not seem to work for it. Understand that you can also start to take advantage of this opportunity, but you have to follow these simple and very important steps to pave your way to success.
1. Research about Commodities.
Find tutorials & websites to learn how the commodity market works. Do some research and exploration - get tips from those who have had their success. Learn from their experiences and adopt their commodities trading strategies.
2. Start with a Demo Account.
Starting with a demo commodity account will help you to learn the working of the commodity market without risking any money. With a demo you will be able to plan & test your strategies for free.
3. Plan your commodities trading strategy.
Just like a soldier, you cannot fight a war without a weapon. Your weapon in trading is your plan that you're going to make. Creating a plan which will ensure you begin to make profit using your commodities trading strategy.
4. Follow your plan.
Do not go against your commodity strategy. You have already picked the tools in your plan. Stick to your plan and do not deviate from this plan as it will not work to your favor if you don't follow it. Be patient and follow your plan.
5. Keep doing what works.
If you are satisfied with how your trading develops and begin making a profit, then you should keep things the way they are without changing anything. You might be tempted to try another strategy but if the one you have is giving you profit keep it & follow it. Do not forget to keep a journal to track your progress.
Top 5 Strategies for Success
The 5 strategies which are key to your successful and can turn your trading around within no time, & if you really want to be successful you need to begin implementing them.
If you have spent a long time learning, then you might know some of these tips, these three tips if you stick to them can improve your results but most beginners will lack the discipline to follow them.
These are the rules that you must master - the rules below when combined with a good commodities system will yield good results.
Commodities Trading Money Management - commodity money management is about controlling your risk, so that after several transactions you are making profits because you have applied the correct commodity money management guidelines.
Good Risk to Reward Ratio - a good risk reward is about 3:1 or 2:1, if it isn't, then the rules of statistics will put you at low odds of ever making money, stack the odds in your favor for every dollar you risk make sure you've the potential of making three times so that you your net is a profit & not a loss.
Capital - Start with enough capital, if you are going to be standard lots make sure you've at least 50,000 dollars to begin with, but do not start with 5K dollars and open 1 contract the math will not add to your favor.
Discipline - Have the discipline to wait for your system to generate the signals, don't open a position because you see that the commodities price is going up or down wait for a signal from your system. Even if it's tough to wait around for a good set up, but not having the discipline to wait for a signal will eventually make you not profitable, so learn to sit & wait for trading signals from your system
Strategy Planning - You must plan your commodity strategy in advance, this the time when the most objective analysis is done. What most investors get wrong is the fact that even though they planned their strategy when in the commodity market they don't follow this. This one tip alone can improve your Profits.
