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Points About Commodity Futures Trading

Todays Date: November 19, 2018

If you’re looking for a solid strategy in trading, you want some highly probable risk/rewards, some strong money management and some direct, smart adjustments. How can you find all that in the world of commodity futures trading? Especially if you’re looking for success in the agricultural futures business, what do you need to remember?

## Figuring Out Commodity Futures Trading

You need a solid system and a well-thought-out strategy when it comes to commodity futures trading. There’s actually a name for when you have a good strategy: it’s called “trend-following swing-trading.” It’s not trend-following in a negative way — it means choosing the trend in your market and trading in that specific direction. You find something (like gold) on an uptrend and you buy long, or sell short if it’s trending downwards. This is all about discipline.

## When to Make Decisions

The proper time to make a decision is before it needs to be made. This is commonly known as “planning.” Decisions made on investing in commodities should not be made on a spur of the moment basis or in an emotional way. Using a system which is pre-planned, it only takes proper execution on the trading day; as the decisions have already been made. This is key for long term growth and the difference between the “picker/chooser” mentality and the professional approach.

## Ups and Downs

If you go into trading without expecting some ups and downs, you’re in for a rough ride. There will always be some ebb and flow, some give and take — to any system. A frequent analogy that gets used here is to that of surfing — when you see a surfer head out for a wave, he or she rides it until the end, before having to lie down on the board and catch another one. That lying down part is the “giving back”, which might look like temporary losses but should never put you off your entire system.

It’s not that hard to be a great trader — look at the consistency and simplicity with which Warren Buffet has managed his holdings. You’ll have trouble understanding commodity futures trading at first, but knowing what to expect and sticking to your core values (which you need to lay out in a clear system beforehand) will help immensely. Use hard work, and stay determined. Ride the wave (and be prepared for the lull) as you find financial success.

Commodity futures trader Brian Schad uses market timing and pattern analysis to understand agricultural futures trading. If you’re interested in subscribing to his reports, take a look at SchadFutures.com today.

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