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How To Trade Commodities is on the minds of thousands of people. As the economy continues to worsen and 401k's become less reliable, many are looking to find a way to support themselves. Trading commodities is a wonderful business that can be very gratifying and rewarding for those that go about it in a business-like fashion.
Most people see commodities trading as a get-rich-quick activity rather than the business that it is, unfortunately. This is quite regretable because how to trade commodities doesn't have to be overly complicated if a person will simply go about it properly. Many go about it without any formalities and proper respect of a business and are very casual in their approach. As a result, a very high percentage of new commodities traders wind up going without consistent profits for months or even years, assuming that they survive that long.
Only 5-10% of new traders survive past six months, making the success rate for new traders very low. The success / failure rate for new businesses in any industry is very similar, which is ironic, but often for the same reasons. Included in the common reasons for failure are insufficient startup capital, no business plan, and lack of experience in the industry or in running a business.
"Treat your trading as the business that it is" sums up in a few words what How To Trade Commodities is really about. If traders would do this, along with seeking training for building the skills to fulfill the various roles of a self-employed business owner, they'd give themselves a tremendous advantage and considerably improved chances of success. Of course there is a considerable body of knowledge to becoming a successful commodities trader, so anyone considering this occupation should allow for time to develop themselves, and their skills as a trader and as the owner of a business.
Impatience and thnking that how to trade commodities means simply funding an account and starting to throw money at the market while expecting huge profits are in for a very unpleasant awakening. Trading commodities is a business of skill and involves personal challenges and trials that aren't commonly experienced in most endeavors. Investing in yourself as the trader to get trained on the business and personal aspects of trading beyond simply knowing your system would be very wise. Even if you have a good system, being the owner of a trading business involves much more that simply placing trades.
There are substantial advantages that the business of trading has over virtually all other businesses. First recognize that you are starting a business if you are considering becoming a trader, and then approach your trading the same as you would in starting a business in any other industry. It would be very un-wise to follow the example of the 90% that fail, as you'd be likely to get the same undesirable results. You're more likely to realize all that trading has to offer if you do as the 10% do.
How To Trade Commodities is simple in many regards if approached properly, yet can be made tremendously difficult and complex if not. Commodity trading will fulfill all your expectations if you simply give it the respect it deserves. A financial beating is what you're in for though if you decide to treat it as a get-rich-quick matter and try to take shortcuts.