It seems when most Novice commodity traders start out, they go through the same cycle. They start out reckless, then buy some books and courses, attend the trading seminars, etc. What if we could bypass all this expensive mess and go right for the jugular of learning? Here's the truth about the hype, fluff and great challenges of becoming a consistently profitable commodity trader.
If it was easy to make money trading commodity futures contracts and options, everyone would be doing it - long ago. If it was easy to become successful by buying the latest commodity trading software system, everyone would have done it long ago. If it was easy to become successful by subscribing to the latest commodity futures hot-guru newsletter, everyone would have done it long ago. If it was easy to become successful by attending the most expensive commodity futures trading seminar, everyone would have done it long ago.
If it was easy to become successful in the futures contract market by doing anything that is easy or available to the public, then the market would change and make the method worthless.
Do you see my point? I'm convinced that every futures trader at one time has believed the statements above. I did. Early on, I thought making money would be easy. I figured I could just buy the best system, or seminar, etc., to be successful. We tend to think that others haven't yet discovered what we are about to buy, learn or try.
The truth is the futures contract market is simply an organism that will do whatever it needs to make the majority losers. If too many are using a trending method, it will go into a chop. If too many are making money by writing options on futures in a tight trading range, the market will have a sharp spike and clean them out. If too many are loading up in a one-way vertical bull move, it will have a sharp sell-off that will rock the house. The futures market will sometimes take out many groups at once. The market is very clever. In reality, the market is you and me.
Remember when you first started looking at technical indicators? Remember the first trend lines you drew? Remember stochastics, moving averages, cycles, Gann, Elliot, channels, etc? Each time we thought we had something that would give us the edge. But after testing and using them for a while, we decided that we needed more. I wish I had a nickel for every time I've heard the comment, "I'm still working on my system - but I'm almost finished." I have news for you. If you're a newcomer, you will be saying that for a very long time.
Blessed art thou who finally arrive at a set of commodity trading methods they have used for a long time without modification. You will find that the "looser" the method is, the longer it will last before the market tears it up. The ups and downs will be milder. This is a good thing. Next: What things should we be focusing on?
Part Two of Three, Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
Thomas Cathey directs the managed futures division of Thomas Capital Management, LLC. Get FREE, the complete 44+ lesson, "Thomas Commodity Trading Course" by visiting: http://www.thomascapitalmanagement.com/commodity/welcome.htm It's brand new... a "street-wise" trading e-course. Get an edge trading futures, day trading e-mini's and selling options. Also learn how "TimeLine Trading" and rare "Ninja trades" can improve your trading results. For more helpful trading info, visit the main Thomas Capital Management trading website at: http://www.ThomasCapitalManagement.com
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