Why Watch the Screen When Commodity Trading
I first have to qualify it all depends on one’s time frame. If you want to be a day trader you would have to sit in front of a screen all day and make countless decisions. As well in my 17 years of trading I have never allocated to a day trader nor have found one. I am sure they exist but I try to lessen the complications in my life & feel this is a very hard task.
My time frame is daily. With that said, I download my data approx 5am since I am overseas at times and put it into my platform. The orders are generated with stops and possible new entries. I compare them to my broker and make sure we are 100% insync. After this, I can say I am done. I do not need to sit and watch the markets go up or down. Doing so is just a time wasting event. I can admit it was interesting in the beginning however I learned from reading Ed Seykota that he enters his orders and then engages in other activities. I also have had conversations with David Druz and he balances his life with yoga & surfing. This is a complete quality of life. In my less mature beginnings I would be addicted to watch the screen. I would get excited if I was long whatever commodity or currency and it was going up or vice versa.
However over the years I learned that not one trade means anything, not one month or even one year means anything.
It is the summation!
It is the compounding of money over time.
It is a combining of those rare trades that exceed expectation over many ..many years and compounding money. All along the way I will have countless trades that do not work (lose money) and experience draw downs that are not fun but all in all markets eventually trend & I have put myself in the position to catch these trends & benefit. Eventually new equity peaks are hit and then followed with more draw downs. The key is to manage your risk. I do not risk more than approx 1% on average so I can have many loses and still (hopefully) survive. You never know in trading, but I put the odds in my favor. I take low risk bets and put myself in a position to catch trends when & if they start. Trend following has to be one of the easiest yet hardest things to do.
Robust trading ideas need to simple in order to trade all markets and time frames. Some people think if it is not complicated enough it will not work. It is just the opposite. Break out ideas to moving averages are not rocket science. The key is to combine ideas and commodity trading advisors in order to “try” to smooth it all out. Commodity trading is not easy nor applicable to all. Many people should never consider trend following or commodity trading. There will always be draw downs. There will always be long periods that nothing happens and profits are not generated & I can not nor anyone even think to guarantee when there will be profits. Your greatest draw down is always ahead of you not behind you.
In order to hopefully succeed in this game one must temper expectation, be extremely patient, manage the risks constantly, be disciplined, follow the rules of their methodology if they are trading themselves, understand how the commodity trading advisor trades if they allocate and realize that if they can handle these then possibly trend following can be a lifetime strategy.
As well watch TV over watching the screen, it might be less aggravating.
Past performance is not indicative of future performance
Futures trading involves risk. People can and do lose money