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Saturday, May 13, 2006

>>>How to trade commodities


...Use the principles of Trend Following to trade commodities.
...Don't predict the future price. Nobody can. Yes, nobody.
...Follow the Price with a suitable stop loss target.
...Do not close profitable positions too soon. Let the price reverse its direction to take your pre-fixed stop, and only then close the earlier position.
...Go with the direction of price and don't predict the future to buck the market's natural course of action.
...Day trading is a net-losing proposition in any venture that involves speculation. Take positions with the trend of a chosen commodity and stay with it till the direction reverses.
...Commodities run in one directional-trends for many days and weeks.
...The biggest traders in the world trade commodities. Much lesser in stocks.

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