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Will You Add? - Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 4
Simple Ways To Improve Your Team’s PerformanceIf you are a leader trying to create a positive work environment, hold off on buying posters and new carpet for your work area and take look in the mirror. Did you know that 70% of how your team members feel while being at work comes from you, the leader? Did you know that as the leader, your actions and emotions are transferred to your team members?So what can you do to ge
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game,
Let’s face it…not everybody likes going to school and high school can be a terrible experience for many students. Whether you’re the hands on type who preferred Shop class to English class, or an athlete who liked working as a team more than studying alone, or even someone who liked schoolwork more than schoolmates; the idea of four more years of school is unbearable. If you identify with any of these types, but still want to secure a
There are commodity futures and option traders who make multi-millions every year. Some have been known to earn several hundred million a year. They consistently make a great living, to say the least. And there are traders who consistently lose. Commodity trading is a big arena, just like the stock market.
I used to wonder why the CFTC didn't come down hard on commodity firms and brokers who consistently lost money for clients. I thought that if it was any other kind of business, wouldn’t the consumer protection or some government authority shut them down?
Then it dawned on me. This is a zero sum game! It's actually a negative sum game when commissions and so called “exchange, transaction, etc." fees are added in. For every commodity trader long there is someone short. For every winning uptick for one trader, there is a losing uptick for someone else.
So this means that half of the money must be lost by somebody if half are winners. Or 95% of the money is lost by commodity traders who give it to 5% of the prosperous others. With a zero sum game, there MUST be many losers, and some big losers if there are big winners. If the CFTC did an audit of a commodity brokerage firm, they could well EXPECT to come in and find brokers with customer accounts that are doing poorly. Brokerage commissions and profits won by the best traders must come from somewhere.
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game, g
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I used to wonder why the CFTC didn't come down hard on commodity firms and brokers who consistently lost money for clients. I thought that if it was any other kind of business, wouldn’t the consumer protection or some government authority shut them down?
Then it dawned on me. This is a zero sum game! It's actually a negative sum game when commissions and so called “exchange, transaction, etc." fees are added in. For every commodity trader long there is someone short. For every winning uptick for one trader, there is a losing uptick for someone else.
So this means that half of the money must be lost by somebody if half are winners. Or 95% of the money is lost by commodity traders who give it to 5% of the prosperous others. With a zero sum game, there MUST be many losers, and some big losers if there are big winners. If the CFTC did an audit of a commodity brokerage firm, they could well EXPECT to come in and find brokers with customer accounts that are doing poorly. Brokerage commissions and profits won by the best traders must come from somewhere.
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game,
There are many ways to share your thoughts, feelings and information with your friends, customers, colleagues and relatives. It is a bit difficult to communicate when the person is very far away staying in some other country or state. But technology has advanced so much that it is now possible to interact with people all over the world with much ease. Thanks to the advent of the Internet, emails can now connect people from differ
Then it dawned on me. This is a zero sum game! It's actually a negative sum game when commissions and so called “exchange, transaction, etc." fees are added in. For every commodity trader long there is someone short. For every winning uptick for one trader, there is a losing uptick for someone else.
So this means that half of the money must be lost by somebody if half are winners. Or 95% of the money is lost by commodity traders who give it to 5% of the prosperous others. With a zero sum game, there MUST be many losers, and some big losers if there are big winners. If the CFTC did an audit of a commodity brokerage firm, they could well EXPECT to come in and find brokers with customer accounts that are doing poorly. Brokerage commissions and profits won by the best traders must come from somewhere.
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game,
Whether you are recording dictation, interviews, conferences, focus groups or meetings, it is important to know how to get the best quality recording, how to find a competent transcriptionist, and what sort of costs you are looking at.The type of transcription depends on the type of recording equipment you have. You can record on to standard audiotape, micro or mini tapes, mini-disks and digital files, which the transcriptionist
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game,
Have you been pondering perhaps hiring a professional resum? writer? You know writing your own resum? may not be that hard and perhaps you can look at other people's resum?s to get a decent format? If you go to Kinko's you will see that many people have left examples of the trash cans. Kinko's also has a book full of resum? formats that you can look at. You can also go online and look for r?sum? formats and find many of them.
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game, given the house odds. The casino house is equivalent to the best commodity traders. (and brokerage houses, of course)
Interestingly enough, theoretically, an exception is the stock market. You could have 100% winning traders if everyone were long and all the stocks kept going up. Even the commissions could be covered. But this is never the case in the real world. There is probably no difference in losing statistics for stock or commodity speculators. It’s a strange arena, this trading. You simply must remember that it is YOU against the competition. And there are sharp traders out there. Pure capitalism. You must make it as difficult as possible for them to take your commodity account money away.
Bottom line: When your commodity trading method’s accuracy is low by design, you MUST let your profits run bigger than losses and limit your losses in order to be profitable to survive over the long haul. You should also never risk more than 5% to 7.5% on any one trade. When trading accuracy is high by design, you can then let the profit to loss ratio get closer to 1:1, take quicker profits and slower losses and risk up to 10% a trade. Remember that your goal is eventually to risk 5% or less a trade, as many professionals do.
Five of Five Parts - Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
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