Impulsive trading by Commodity Traders
Impulsive trading by commodity traders has to be one of the biggest mistakes that commodity traders make. One day they are long then the next they are short. These commodity traders do not have a time frame nor a plan. They do not even know which markets they are trading. They trade impulsively or based on intuition. This is one of the reasons that so many commodity traders end up quitting. Personally I work with a complete plan with rules. I know exactly why I am getting into a trade, why I am exiting a trade with a profit or even exiting with a loss. All contingencies are thought out. Operating in this fashion has taken the pressure off and lets me trade freely.
You have a choice, You can invest the time to develop your plan or you can shoot from the hip. This is if you want to trade for yourself. Your other choice is to allocate to a commodity trading advisor but still you need the knowledge of trading and need to ask the right questions. In my opinion these right questions need to mostly focused on risk as a pose to entries & exits. Any trade is 50/50. The risk aspects are one of the most important attributes of success or failure.
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. Past performance is not indicative of future results.