By traders I mean those who trade long and short in stocks, bonds, forex, commodities, futures, etc…
The opening line in that link cracks me up.
Many very intelligent people have failed to answer this question. Intelligence has very little to do with it, surprisingly, as I am a test of that premise. I am not overly intelligent, yet I am successful.
What a trader lacks in intelligence, he makes up for with study and hard work. Perseverence is a must, passion is a must. If you are just doing it for the money, it will grow tiresome, and will be too much work.
Although a trader is probably intelligent, he need not be, but he is certainly knowledgeable. I have over 100 books on the subject.
Like any vocation, it takes hard work, lots of study, and the testing of your theories, learning what makes you tick, learning your own particular time and stress levels, and fighting the emotions of fear, greed, and loss of hope.
Most traders spend their entire time looking for the Holy Grail of indicators, and that's why 85% of all traders fail.
Your success or failure lies within you. Part of the key lies in finding the right combination of which markets and which time intervals to trade. For example, I am no Day Trader, although I do Day Trade sometimes. In choppy markets, it is a must, like now in the Currencies and even more so in the stock market.
Some say that psychology is 50% of trading. I would guess more. The markets weeds out people who are unable to be honest with themselves. Trading is one of the most self-revelatory things that a person can do. Day in and day out you’re confronted with all your primal emotions.
Many traders react to uncertainty by hoping it would just go away. They fruitlessly try to deny the implications of change. But change is commonplace in trading, and it's vital that you accept change and think of creative ways to deal with it. You must learn to accept the market on its own terms; hope must go out the window. After a trade is put on, it will do what it will do, and no amount of hope or fear will change it. Without a firm committment to this psychology, if you chase your tail in worry, the markets will eat you alive.
Most novices focus on how much money they can make, which is basakwards to what they should be doing. If you focus on risk control and money management, you might stick around to play the game another day.
There are so many places you can go wrong, and only a few right ways of thinking will help you. Your ability to concentrate fully and intensely can mean the difference between consistently taking home huge profits and barely staying above water. It's vital that you pay attention to multiple sources of information, sift through them, prioritize each separate piece, and make an astute decision once all information has been scrutinized. You can't be distracted and unfocused while formulating a trading plan or monitoring an ongoing trade.
It is vital that you develop your intuition by trading with a variety of methods under a wide range of market conditions.
These reasons are just for starters. Maybe I should write a book.
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i want to trade in pr. metal commodities, is there any online way to trade and if yes please explain the ways and charges.
allso explain me the commodities trading it benefit and losess.
You trade commodities on the futures market
You can do it through any registered broker.
But I would advise against doing it, as that market should only be used by people who know what they are doing.
It is a risky, highly leveraged market, the losses can be tremendous and immediate.
If You want prescious metals.
Buy a no-load precious metals mutual fund.
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Several online sources offer expensive services for supplying this data but they all come with powerful additional capabilities that are of no use to me. I just need the data to do some simple trading system backtesting.
Remember you get what you pay for, but it is true that almost everything is available somewhere online, at least in a fairly simple form. I have included the link to a good commodities charting site-it might be all you need: Java-based platforms are good because you can see price ranges for specific days by doing crosshairs. Anything more than that you will probably end up paying for. Happy trading!
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Learn to trade like the pros, educational course teaches you how to
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http://FxProfitSecrets.com/blog with John Hansen is the best forex website available. If your a forex newbie and your goal is to make money trading forex, "FX Profit Secrets" is the place to start.
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I want to clear some things up about commodities trading. At my university we had a presentation by a BP oil trader about oil trading and he said that basically what you’re doing in oil trading is making contracts to pick up a certain amount of oil bought at a certain price at a certain place.
Firstly, does this principle apply to all commodities such as metals and agricultural products?
And secondly, how do investors like investment banks and hedge funds go about their trading? Since they obviously do not have the tankers or refineries that for example BP has to actually carry out the physical side of taking delivery of the raw materials. Do they just buy futures and then hope to sell them on to other investors before the deadline comes to go and pick up the goods?
And thirdly, is there any online game where I can trade in commodities (I am most interested in oil) at real market prices (but of course not for real money but just “make believe money”)?
1. yes, buying and selling contracts (the obligation to take or deliver at a specified price on a specified date. “place” has nothing to do with it.
2. 99% of the time, no oil ever trades hands, it’s all imaginary money.
3. this concept applies not only to oil and commodities, but to all futures products.
skipping over your banking questions… as for trading in a game. you’d seek to gain quite little by this — as trading derivatives is something that is typically only well understood by professional traders that have been taught by someone else in the trade. a process that can often take a couple of years. you’d be better off pursuing a position as a trader’s assistant within a professional firm to learn the business.
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