• The Best Way to Learn to Trade

  • If you are like most new traders, you want to know what is the best way to learn commodity trading. I know, I’ve been there too. Mine was a very expensive lesson I might add and I don’t want you repeating the same mistakes I made.the best way to learn to trade

    I’m going to outline some steps for you and the reasons why I feel these steps are important. This comes from my heart and not from the “my wallet” side.
    Follow it in the order below and your chance for success will be much higher.

    1. Learn to trade: Now that might sound stupid but trust me it’s not. If you want to become successful in anything in life don’t you think you should learn how to do it before plunking down a lot of money and opening a trading account and then “learn as you go”. Please don’t open an account with real money before you have practiced with a demo account and have consistently made money with it.
    2. Find a mentor: Easier said than done I might add. I spent the first two years of my “trading life” trying to follow the advice of probably 100 different people. I thought that if someone wrote a course or a book about trading that they knew what they were doing. Wow, was I wrong. What I’ve found to be true over the last 20 years of trading is that most, although I can’t possibly know the exact percent, people who write books, courses, or run trading rooms don’t ever trade with real money. To me that’s amazing. By the way, I do trade the markets with real money in case you are wondering.
    3. Treat it as a business: Trading is a business and if you don’t treat it like a business you will lose. Read that again please. Think for a moment. If you opened a business, you would need to buy things for that business to succeed. Right? It’s the same thing in trading. You need a “tool box” so to speak.

    In that tool box you will need things like a computer, trading software, price data for you charts, Internet connections and a trading “buddy” or a mentor that can help you with all of it. When it comes to any of the above you will usually get what you pay for.

    I have looked at all the major software trading platforms out there. To be honest, as an educator every trading software company would love for me to use their software and do most anything they can to get me to use it. I even had one company offer my wife and I a two-week cruise and free software if I would just use it and “suggest” that my students use it too. I turned them down and told them I can’t be bought and won’t try and sell something to my students that I don’t personally use. By the way, their software was horrible.

    I’m not trying to sell you anything here but I will tell you that the only software I’ve used in the last twenty years is from Gecko Software and you can get a free 14-day trial by clicking HERE

    “Listen” to the markets, not the talking heads:

      You can’t just second guess that markets. You must know what the markets are doing and more importantly know that they should do next. There are only three things the markets can do; they can go up, they can go down and they can go more or less sideways.

    There are ways you can trade the markets no matter which direction they are going. I think the hardest concept for a new trader is how do you make money when the market goes down.

    We’ve all been trained to think “Buy low & sell high”. Well that’s just one way to make money. How would you like to sell something to someone for $1,000.00 and then when it comes time to deliver it you can buy it for $500.00 and the person has to pay you $1,000.00 for it? Yep, that’s called selling the market or shorting the market.

    I can’t begin to tell you how many of my students tell me that so and so from Bloomberg or another network or radio station said that a particular market is going to go up or down or something. Do yourself a favor and don’t listen to these people. Learn to trade yourself. There’s that word “learn” again. You will hear it a lot from me in the coming months.

    1. Don’t ever trade with your rent money: What I mean by that is that when you do decide to trade only trade with money that you can afford to lose which isn’t your “rent” money. It should only be money that if you lose it that you won’t jump off the bridge over.

    If you are trading money that if you lose it your lifestyle will be drastically affected. You can’t trade “scared” or I can promise you that you will make stupid mistakes. I’ve seen it happen to many times.

    Also once you start trading with real money the first thing you should look at is how much money you can lose on the trade, now how much money you can make. If you start with that and it’s something that you are willing to accept then if you lose it at least you knew going in that you were comfortable with it. We all have losing trades. What irks me is when I see people send out emails stating some nonsense that they have 98% winning trades. That my friend is a lie. If you can win 50-60% of the time but win twice as much as you lose you will do well and can make good money trading. There is an old saying, “Cut your losses quickly and let your winners run”. Please remember that. We will get into a lot more detail about this as time progresses.