Atricle Dump
#1 in Business Subscribe Email Print

You are here: Home > Finance > Stocks Mutual Funds > Commodity Trading - Is This Stuff Blocking Your Way To Trading Success? - PART 2

Tags

  • paper
  • overall
  • without doing
  • futures contracts
  • blessing diversification

  • Links

  • Case Study in Online Think Tank Discussions
  • Internet Treadmill Purchasing Made Easy So You Don't Waste Money On A Bad Treadmill
  • South Florida Commercial Real Estate: Scouting the Best Deal
  • Atricle Dump - Commodity Trading - Is This Stuff Blocking Your Way To Trading Success? - PART 2

    Optimizing Adsense For Better Performance and More Money!
    So you want to make money with Google Adsense? I don't blame you, who doesn't want residual income! This article will show you how to better optimize Google Adsense to make more money from your web site(s).Before we get into it, learn more about Google Adsense here: http://www.google.com/services/adsense_tour/First and foremost is: PositioningWhere you position your Adsense link boxes and banner ads is extremely important. Trying to make money from the bottom of your pages within your website just won
    term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going t

    Looking for a Job Washing Cars; Mobile Car Washes Pay More Per Hour
    Each year the car wash industry does many surveys and one of the most interesting surveys is the amount of money that they pay per hour to their regular employees. It is just over minimum wage.It turns out that most mobile car washes pay more per hour than fixed site car washes and if you are looking for a job in a car wash you might want to get a job with a mobile carwash and get to work in parking lots all day and not in a smelly carwash.If you are the manager of a carwash you will most likely make over $4
    Here's some more stuff that can block your success in commodity trading:

    Be alert to aggressive commodity brokers who may try to "load up" a new client quickly in an attempt to "lock in" their capital. This means putting all your money into the market right away. This tactic is sometimes used when buying options. Options can create a false sense of hope and safety. They claim there is plenty of time for a move since commodity options can have several months before expiration. Yes, lots of expensive time to sit and hope and wait. But if the futures market goes nowhere for a few months, the client is shocked to find his capital has not remained intact, but rather has eroded severely.

    If the commodity broker fears his own poor trading record, it is easier to make full use of the client’s capital by loading him right in the beginning. In contrast, when committing to trades slowly and holding cash in reserve, a client is more apt to close his account if part of it erodes, before much damage is done. So, you can see the incentive for a commodity broker with a poor trading record to try to put most of the money into the market quickly. It’s sad, really. I have no problem with poor trading. There are times when I can’t trade out of a wet paper bag. We all have our bad times. But what bothers me is putting too much money at risk with an all-or-nothing attitude. Just be alert to this. It's YOUR money at risk.

    Money management is important no matter what style of commodity trading. Risking less than 10% on any one trade is the key to survival. Less than 5% is even better if you have the account equity. I’m not saying that futures contracts are better than commodity options. I’m saying buying way out-of the-money, far out in time commodity futures options can make us lazy in our market entries and risk analysis. The cry is, “I have plenty of TIME!!... I’m not worried.” But that expensive time passes quickly. Just look at the monthly chart of your favorite commodity (or stock) and notice how often the market will chop nowhere for six months at a time.

    With futures contracts, you are "marked to the market" and are more apt to do something about a dead position. When buying options on futures, time can creep up while we’re lying on the beach fat and happy waiting for something to happen. Once the commodity option premium declines sharply, the universal urge is to hold it and go down with the ship. The better solution is to take a partial loss and move on. (For a better overall solution, read my articles about protecting a futures contract using an option hedge)

    If you are doing the long-term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going to

    Cash Flow - How Big Is Yours?
    How’s your cash flow? I might just as well have asked a woman her age. Joe Dominguez, author of “Your Money or Your Life” says that the most embarrassing question is “How big is yours?” Your paycheck, that is.I was once sitting in a coffee shop with my friend, Jade. She had just introduced me to Phil, a friend of hers who she was doing some business with. Phil and I got to talking and discovered that we had both experienced some similar childhood traumas. We got into a very personal discussion about our healing., but rather has eroded severely.

    If the commodity broker fears his own poor trading record, it is easier to make full use of the client’s capital by loading him right in the beginning. In contrast, when committing to trades slowly and holding cash in reserve, a client is more apt to close his account if part of it erodes, before much damage is done. So, you can see the incentive for a commodity broker with a poor trading record to try to put most of the money into the market quickly. It’s sad, really. I have no problem with poor trading. There are times when I can’t trade out of a wet paper bag. We all have our bad times. But what bothers me is putting too much money at risk with an all-or-nothing attitude. Just be alert to this. It's YOUR money at risk.

    Money management is important no matter what style of commodity trading. Risking less than 10% on any one trade is the key to survival. Less than 5% is even better if you have the account equity. I’m not saying that futures contracts are better than commodity options. I’m saying buying way out-of the-money, far out in time commodity futures options can make us lazy in our market entries and risk analysis. The cry is, “I have plenty of TIME!!... I’m not worried.” But that expensive time passes quickly. Just look at the monthly chart of your favorite commodity (or stock) and notice how often the market will chop nowhere for six months at a time.

    With futures contracts, you are "marked to the market" and are more apt to do something about a dead position. When buying options on futures, time can creep up while we’re lying on the beach fat and happy waiting for something to happen. Once the commodity option premium declines sharply, the universal urge is to hold it and go down with the ship. The better solution is to take a partial loss and move on. (For a better overall solution, read my articles about protecting a futures contract using an option hedge)

    If you are doing the long-term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going t

    Choosing Anti-Spam Software That Is Right For You
    It is believed that on an average, an email user receives more than 2000 Spam emails every year! By certain accounts, an email user receives more than 77 percent of the mail as spam – which is around 10 out of every 13 emails you receive! More than two-thirds of the email passing through the air waves are pure junk – unwanted and unsolicited. It, therefore, becomes imperative that you chose the right anti-spam software that meets with your requirements.Spam happens to be one of the biggest disadvantages of using com
    g too much money at risk with an all-or-nothing attitude. Just be alert to this. It's YOUR money at risk.

    Money management is important no matter what style of commodity trading. Risking less than 10% on any one trade is the key to survival. Less than 5% is even better if you have the account equity. I’m not saying that futures contracts are better than commodity options. I’m saying buying way out-of the-money, far out in time commodity futures options can make us lazy in our market entries and risk analysis. The cry is, “I have plenty of TIME!!... I’m not worried.” But that expensive time passes quickly. Just look at the monthly chart of your favorite commodity (or stock) and notice how often the market will chop nowhere for six months at a time.

    With futures contracts, you are "marked to the market" and are more apt to do something about a dead position. When buying options on futures, time can creep up while we’re lying on the beach fat and happy waiting for something to happen. Once the commodity option premium declines sharply, the universal urge is to hold it and go down with the ship. The better solution is to take a partial loss and move on. (For a better overall solution, read my articles about protecting a futures contract using an option hedge)

    If you are doing the long-term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going t

    Creativity & Entrepreneurship: The Creative Evolution of an Intellectual Property(c)
    In each of us, there is a creative spark - a unique purpose and destiny for which we are born. Most of us have forgotten what that special gift is, or we are afraid to live it. My successful secret formula as outlined in my seminars, e-book and CD's will help you unlock your creative potential and discover your purpose in life. Passion, right-action, hard work and a commitment to excellence will create the quantum leap you desire in your life today!I have been involved in entrepreneurship, creative endeavors and pub
    our favorite commodity (or stock) and notice how often the market will chop nowhere for six months at a time.

    With futures contracts, you are "marked to the market" and are more apt to do something about a dead position. When buying options on futures, time can creep up while we’re lying on the beach fat and happy waiting for something to happen. Once the commodity option premium declines sharply, the universal urge is to hold it and go down with the ship. The better solution is to take a partial loss and move on. (For a better overall solution, read my articles about protecting a futures contract using an option hedge)

    If you are doing the long-term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going t

    How to Get 100s of People into Your Downline(s) in Just a Few Months
    I've been "seriously" working the Web since late 2000. I joined a few affiliate programmes in the early days - more than I could handle back then - and more or less gave up on every single one of them.That's not to say there was anything wrong with the programmes, but I just couldn't get enough referrals. Why couldn't I get them? Because my approach was all wrong. I've since worked out a strategy to market this kind of opportunity. In fact, I think I can successfully market ANY programme that offers rewards for buil
    term commodity option analysis for your own account, then do it like you are going to buy a house. You wouldn’t just jump into a new house purchase without doing as much homework as possible, right? You would take your time. There’s no way a real estate agent could push you along into a fast deal, right? Then unless you know and trust your commodity broker and are confident in his abilities, be cautious if he wants you to commit more than 10% of your account to one trade.

    Even “diversification” can be a curse as well as a blessing. Diversification can be another way of saying, “I don’t know what’s going on, so I’m going to spread my money around.” From time to time, every one of us has a string of losses. You need to be able to withstand at least ten bad commodity trades in a row and still have capital to trade. Even if you “diversify”, there will be times when all trades go bad. Loading up an entire futures or options account equity into two or three ideas is a sure way to fail and fail quickly. Maybe not on this series of trades, but over time, probability will have its day. Diversification is OK when you get a cluster of high probability trades at once. To diversify for the sake of diversification may backfire.

    Part Three of Four - 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.

    HTTP = HTML link (for blogs, profiles,phorums):
    <a href="http://www.articledump.net/article/116764/articledump-Commodity-Trading---Is-This-Stuff-Blocking-Your-Way-To-Trading-Success--PART-2.html">Commodity Trading - Is This Stuff Blocking Your Way To Trading Success? - PART 2</a>

    BB link (for phorums):
    [url=http://www.articledump.net/article/116764/articledump-Commodity-Trading---Is-This-Stuff-Blocking-Your-Way-To-Trading-Success--PART-2.html]Commodity Trading - Is This Stuff Blocking Your Way To Trading Success? - PART 2[/url]

    Related Articles:

    Territory Limitations Policies for Franchised Companies

    Phone Calls and Children, The Challenges of Working at Home, Today

    Keyword Articles: Use Magical Keywords in Your Articles and Get Lots of Traffic

    Bookmark it: del.icio.us digg.com reddit.com netvouz.com google.com yahoo.com technorati.com furl.net bloglines.com socialdust.com ma.gnolia.com newsvine.com slashdot.org simpy.com shadows.com blinklist.com