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Learning how to trade commodities

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No.39 • 
chucknorris@9 
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Which commodities?

Commodities are complex, with interconnected relationships. This is at the best of times, you add in the turbulent geopolitics at present and things get messy for those not used to the volatility.

I'd say feelinsg are all good - but only if you have an underlying knowledge base of the commodity you are trading. Otherwise it's a guess.

Good luck.
No.37 • 
frank@19 
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I will repeat the comments made to me earlier this year.

1/ You must have a trading edge; a system that means that statistically you will win, if you cut losses short. This can be based on Technical Analysis, Fundamental Analysis or a combination of both.

2/ You can’t trade without stop losses. Occasionally you will find that your stop loss is passed by a gap but mostly it will save you massive losses.

3/ Leverage means that you ca make infinite wins but you can make infinite losses.

4/ Mark Douglas videos were recommended and there is a particular series of 4 that are a good starting point. They might seem slow but each session has value to ease you into his final message: to win, you need consistent gains.

5/ Don’t get sucked in to believe that you are a great trader because you had a win or 3. You must rely on a statistically significant success rate. Even a 50% hit rate will make you money as long as the 50% losses are cut short by a stop loss.

6/ Find a trading strategy that suits your temperament and back test it, before you live trade.

7/ If you can’t control your emotions you need a system for controlling the outcomes. Emotions will make you sell low and buy high. They have to be managed.

All of the above has sent me down a rabbit hole of learning. I haven’t traded since losing what to me was a substantial amount of money. The shock jolted me out of being lazy and just gambling.

Good luck
No.36 • 
catarina@20 
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When you say pick a market, you mean a specific commodity? like coffee, oil, sugar etc or one of the General Markets like Stocks, Forex, Commodity?
No.35 • 
novelmacaroni@7 
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I trade commodities for a living (ags mostly). Here is my advice.

Read all of the market wizard books.

Learn what risk control is and how to implement it.

Read them all again

Pick a market and learn everything you can about it

Start trading it risking no more than 2% of your capital per trade

After 100 trades repeat the whole process again!