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This article discusses the main characteristics associated with those commodities traders who successfully grow their portfolios; the trading strategy, trading personality, and characteristics are discussed as they relate to successful commodities trading.
It is also reported that 90% of the participants in commodities and futures trading lose. It is also common belief that even successful traders only make money on 40% of their trades. There is no one single technique that guarantees success in futures and commodities trading. Individuals have used purely fundamental analysis, solely technical analysis, and a combination of the two, for financial reward. What are the attributes that successful traders have in common? Interviews and studies seem to point to certain universal characteristics among successful traders:
Passion: All successful traders have a passion for their endeavor. Even an initial failure did not deter or diminish their overwhelming desire for success. All profitable investors in the commodities and futures markets have this unending desire to win and to do whatever it takes to reach their goal.
Confidence: Every winning investor has an unshakable confidence that over the long run they will meet their goals. Without exception, these individuals feel that their investment methods are best safest place to put their money.
Methodology: Each of these persons had a well researched and detailed methodology prior to beginning trading and investing. All religiously and fanatically followed the rules that work for them, never deviating from their approach. Strict and unwavering discipline is characteristic in all their strategies, regardless of the source of their methodology.
Professionalism: All successful traders do not regard their endeavor as a pastime or again. Everything is taken with the utmost seriousness. The most successful traders spend most of their time on market analysis, trading strategy, and their continued improvement. This is not a part-time job.
Risk Management: In order to be successful history shows that the superstars in this arena exercise strict risk control. Without limiting losses and maximizing profits, no one can ever hope to enjoy the unprecedented benefits that are offered in the futures and commodities markets.
Humility: Humility is a universal characteristic found in all successful traders. Winners realize that the market is far more powerful than any individual participant, regardless of his size. They all have the patience, skills, and experience to wait for the ideal opportunities to rise before risking any of their capital.
Individual Mindset: Winners tend to be extremely individualistic. They often discount or ignore commonly reported news. They are well aware that most of the participants in the market are ultimately going to fail. Acting separate from the group is thought to be important to their success.
Accept Losses: Profitable investors also realize that losses are inevitable. Being able to learn from one's mistakes and thereby avoiding their future re-occurrence distinguishes them from their less illustrious counterparts.
Finally, winners truly enjoy what they are doing. It's not work for them. People who enter futures and commodities trading simply to make money will inevitably wind up losing. There has to be a genuine love of the market for success to occur.
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