Deadly Commodities Trading Sins
Everyone knows the seven deadly sins: pride, envy, gluttony,
lust, anger, greed, and sloth. But did you know there are
commodities trading sins as well? Sins that are surprisingly
similar to the seven sins, and that can be just as deadly to your
commodities trading career. The commodities trading sins are:
pride, envy, greed, and laziness. I`m sure there is a way to work
in the other three if I really try, but let`s stick with these
four, since they cause many traders a great deal of difficulty.
Where do these sins come into play? From traders` reactions to the
markets, most markets have predictable trends and repeated
patterns. Why? Most commodities trading movements in the markets
are a result of the motivations of people in those markets. Many
people say that what drives the markets are greed and fear. Greed
makes people buy, and fear makes them sell. Greed and fear can
benefit traders: Greed, or at least the desire to make money, is
why we trade.. Fear is a healthy response that occurs when we sense
danger or disaster closing in, and it motivates us to get out of a
bad situation.
But when they get out of control, greed and fear are two of the
basic psychological pitfalls that make traders fail.
Other pitfalls include:
1. Wanting to seem wise,
2. Not admitting to making mistakes (pride),
3. Trying to do what everyone else is doing because they seem to be
doing better (envy),
4. Being unwilling to stop your commodities trading in case there
is more money to be made (greed), OR
5. Being too willing to follow advice and not find out on your own
when you trade (laziness).
If you want to improve as a trader, you must identify the mistakes
you make consistently so that you can recognize your own stumbling
blocks. Look back at the ten losing trades you`ve made in the last
few weeks. Can you find any likenesses? Look closely and be honest
with yourself. Part of being a good trader is being able to look at
things with a clear eye and seeing what`s there, not what you wish
was there.
Now this is harder: Look back at your recent successful trades and
find the ones that succeeded only by luck. How would they have
turned out if you hadn`t been lucky? What were your mistakes with
those trades? If you`re not certain what your mistakes are, or how
to correct them, read the next articles in this series. I`ll be
discussing each sin separately, with tips on how to overcome
them.
Your goal as a trader should not be to trade perfectly all the
time, to win on every trade or to be perfect in any other way.
Putting too much pressure on yourself to be perfect is one of the
best ways to make many mistakes. Besides,, no one can be perfect.
You don`t need to be perfect. You can make amazing amounts of money
in the markets by being a good, consistent trader. As a trader,
you`ll be richly rewarded if you do your job consistently and well.
You`ll be doing far better than 99 percent of the other people
trading stocks in the market, not to mention money managers,
analysts, and other so called EXPERTS
The purpose of identifying your stumbling blocks in your
commodities trading is not to make you feel like you`re a poor
trader. All traders, even the best, have weaknesses, they just
recognize and control those weaknesses. Instead, this process
enables you to develop a realistic sense of your strengths and
weaknesses so you can recognize mistakes before they happen. Being
realistic, about yourself, about the market, and about the trades
you make. This is the way to succeed as a trader.
About the Author:
Discover BIG profits in the market by downloading your FREE copy of
David's new Ultimate Commodity Trading Systems course. http://www.ultimate-trading-systems.com/commodities.html
Read more articles by: David Jenyns
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Written by: David Jenyns
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