1 |
ONLY TRADE WITH RISK CAPITAL. THE
RISK OF LOSS IN COMMODITY FUTURE TRADING CAN BE SUBSTANTIAL. THEREFORE, YOU
SHOULD CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU AFTER YOU HAVE CAREFULLY REVIEWED
YOUR FINANCIAL CONDITION. |
|
2 |
NEVER RISK MORE THAN 5% OF YOUR CAPITAL ON ANY
TRADE. AS YOUR ACCOUNT GROWS, REDUCE YOUR RISK TO 2.5% ON ANY TRADE. ALWAYS
TRADE WITHIN YOUR CAPABILITIES. |
|
3 |
USE SELF-DISCIPLINE. ALWAYS USE STOP LOSS ORDERS
AND PROTECT A TRADE BY USING REASONABLE PRICE LIMITS. |
|
4 |
NEVER LET A PROFIT TURN INTO A LOSS. USE A STOP
LOSS ORDER THAT WILL AT LEAST BREAK EVEN OR PREFERABLY LOCK IN A PROFIT. |
|
5 |
YOUR RISK SHOULD BE EQUALLY DISTRIBUTED OVER THREE OR
FOUR DIFFERENT COMMODITIES UNLESS YOU ARE A DAY TRADER AND FLAT AT THE END OF THE DAY. |
|
6 |
POSITION TRADERS; IT IS BEST NOT TO COMMIT MORE
THAN 35% TO MARGIN AND NEVER MORE THAN 50%. |
|
7 |
REMEMBER THE "TREND IS YOUR FRIEND, SO IF
YOU CAN'T GO WITH THE FLOW YOU'RE GOING TO LOSE YOUR DOUGH". |
|
8 |
TRADE IN THE MOST ACTIVE MARKETS AND AVOID INACTIVE
MARKETS. ALSO, TRADE THE CONTRACT MONTHS WITH THE MOST OPEN INTEREST.
THEY ARE MORE LIQUID. |
|
9 |
BECOME FAMILIAR WITH THE DIFFERENT TYPES OF ORDERS AND
WHICH ONES ARE BEST SUITED FOR YOUR TRADING STYLE. YOUR BROKER CAN HELP YOU. (OUR
INTRODUCTORY PACKAGE INCLUDES AN "ORDER PLACING GUIDE.") |
|
10 |
NEVER LET GREED TAKE CONTROL. IT IS BEST TO
ALWAYS LEAVE SOME ON THE TABLE FOR THE LATE ARRIVALS. |
|
11 |
AVOID TAKING SMALL PROFITS AND BIG LOSSES. |
|
12 |
NEVER ADD TO A LOSING POSITION. |
|
13 |
TRADING BECAUSE YOU ARE ANXIOUS FROM WAITING AND JUST
BECAUSE YOU HAVE LOST YOUR PATIENCE WILL ALMOST CERTAINLY CAUSE LOSSES. |
|
14 |
GUESSING REVERSAL POINTS CAN BE RISKY. NEVER BUY
JUST BECAUSE THE PRICE OF THE COMMODITY IS LOW OR SELL JUST BECAUSE THE PRICE IS HIGH. LET
THE MARKET PROVE ITS DIRECTION. |
|
15 |
DO NOT INCREASE YOUR TRADING AFTER A PERIOD OF
PROFITABLE TRADES. INCREASED TRADING MEANS INCREASED RISK AND POSSIBLE LOSSES. |
|
16 |
IF YOU ARE CONFUSED BY THE MARKET ACTION, DO NOT
TRADE. YOU DO NOT NEED TO BE IN THE MARKET 100% OF THE TIME. |
|
17 |
LEARN TO ADJUST THE SIZE OF YOUR POSITIONS AND THE
FREQUENCY OF YOUR TRADES FOR DIFFERENT MARKETS. |
|
18 |
LOOK AT BOTH SIDES OF THE MARKET. IT IS MORE
IMPORTANT TO CHANGE YOUR POSITION IF THE MARKET CHANGES DIRECTION THAN TO WAIT AND BE
STOPPED OUT. |
|
19 |
LEARN FROM YOUR TRADING MISTAKES. LOOK AT EVERY
ANGLE AND ASK YOURSELF WHY, THEN MOVE ON TO THE NEXT TRADE. YOU DON'T HAVE
TIME TO FEEL SORRY FOR YOURSELF. THE MARKET DOESN'T CARE. |
|
20 |
DEVELOP YOUR TRADING PLAN AND REMAIN FOCUSED. DO
NOT ALLOW OUTSIDE INTERFERENCE ( INCLUDING YOUR BROKER ) TO AFFECT YOUR THOUGHTS. TAKE A
BREAK AFTER 3 LOSSES IN A ROW. |
|
21 |
ALWAYS REMAIN TRUE TO YOUR TRADING PLAN BUT KEEP AN
OPEN MIND ABOUT YOUR TRADING. THIS WILL ENABLE YOU TO IMPROVE YOUR PLAN AS YOUR
KNOWLEDGE OF THE MARKETS INCREASES. |
|
22 |
AFTER YOU HAVE SUCCESSFULLY ACCUMULATED PROFITS AND
BUILT YOUR ACCOUNT TO A PREDETERMINED LEVEL, IT'S PSYCHOLOGICALLY ADVANTAGEOUS TO
WITHDRAW A PORTION OF PROFITS AND TREAT YOURSELF. |
|
23 |
HERE ARE SOME REASONS PEOPLE LOSE MONEY
[1] NO MONEY MANAGEMENT
[2] NO DEFINED RISK PARAMETER
[3] TRADING OUT OF FEAR
[4] TRADING OUT OF GREED
[5] BEING UNDERCAPITALIZED
|
|
24 |
FINALLY, ONLY USE FUNDS YOU CAN AFFORD TO RISK! |
