Commodity Trading and Me
Commodity trading must be approached as a business venture if you wish to make money at it.
Hopefully, prior to starting a business that requires the use of risk capital you would take the time to learn a good bit about the business before jumping right in. It would be a very good idea to take the time to prepare a compehensive business plan.
It’s always a good idea to have some firm idea about your goals and means of achieving those goals before striking out to attempt to achieve anything.
The same principals apply to commodity trading. You need to set aside risk capital that you can afford to lose. You need a plan not only for each trade but for your commodity trading business.
As you will be competing against some very sharp people and some quite sophisticated computer trading programs you had best learn a good bit about how the markets work and what to expect before committing your capital to trades. On the job trading can be expensive when large contracts of commodity futures are being traded.
I speak from 15 plus years experience as a retired commodity broker and forex dealer and trader. In this blog I’ll do my best to tell it like it is in the fast moving world of commodities and forex.
Some of the items I’ll cover will be background information and some will be up to the minute commodity and currency trend analysis. Probably a few commodity and foreign exchange war stories will be tossed in as well.
The prospect of making large amounts of money fast is enough to drive some folks quite insane. Fortunately, there are lessons to be learned from their insanity.
Our goal will be to on balance make money, not to trade just to trade. While trading for the excitment of it is great for the commodity brokers of the world it usually isn’t so great for the trader.
To win at the commodity trading game one must be prepared to take losses. Surviving by preserving risk capital until you are on the right side of a major move is a major objective.
It’s an interesting business and we shall explore it together. I look forward to your participation and comments on this blog.
Gerald Greene
Pattaya, Thailand
Email: articlediscovery@[remove]gmail.com
June 2007.
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