Cash In On The Booming Demand For Futures Trading -
Understanding Good Habits
Socrates said that we are what we repeatedly do. Excellence,
then, is a habit. Without realizing it, most people fall into
patterns of behaviour that quickly turns into habits. Everyone
knows how hard it is to break a bad habit, so it`s worth you
while to learn good commodity and futures trading habits, and to
stick to them.
But, most people don`t really know their own habits, even though
everyone has behaviour patterns that make them unique. The fact
that you engage in these activities without consciously thinking
about them is what makes them habits. By analyzing your habits
and behaviours, you can greatly improve your commodity and
futures trading abilities. Successful traders learn to recognize
the behavioural patterns that cause them to be unfocused or
undisciplined.
Some poor commodity and futures trading behaviors are due to
emotional reactions, but others are simply the result of bad
habits. Your goal is to make your commodity and futures trading
systematic, logical and habitual. Successful traders also learn
from experience and from their mistakes, and analyze what
behaviours work, and which ones don`t work. By eliminating
behaviours that cause mistakes, they maximize their winning
trades and minimize the number of, and the effect of, their
losing trades.
Once you have begun to pay close attention to your commodity and
futures trading behaviours, you will quickly see where you need
improvement. It is important to take responsibility for your
trades, and analyze what mistakes you might have made. Don`t
give into temptation and blame the market; there is no way to
learn and grow from that point of view. Look to yourself for
answers and accountability.
It always makes sense to learn from your mistakes. If you can
identify the conditions that may have caused a mistake, you may
be able to keep it from happening in the future. No one is
perfect, and things in their personal or professional lives at
one time or another have affected all traders. You may have been
distracted due to outside events, or have gotten emotional
because of a particularly successful trade. If you can recognize
these types of patterns before they affect your commodity and
futures trading, you can stay focused and disciplined.
Following your commodity and futures trading plan should become
a habit. Always avoid spontaneous trades. By looking closely at
the market to determine the current trends, a successful trader
prepares the appropriate strategy for the following day, and
with his commodity and futures trading plan in hand, is less
likely to be influenced by emotion.
Take the time to create routines and structures around your
commodity and futures trading. Keeping good records, logging
your trades, consistently analyzing market indicators, and
staying focused on your short term goals will help you stay on
track. Also, consider setting small goals for each day. Make
sure the goals are measurable and attainable. The goals will
give you momentum, and increase your confidence.
Recognize that sometimes you need to change your system. If your
commodity and futures trading style is not suited to short term
market conditions; adapt quickly, and if necessary, don`t trade.
Always look for errors you have made, and analyze them to
determine a better course of action to take the next time. By
being aware of your actions, and working to improve your trades,
you will find the set of behaviours that will make success a
habit for you.
David Jenyns, leading expert in designing profitable trading
systems, offers a huge free collection of trading related tips
and tricks. http://w
ww.commoditytradingsystemsx.com/index.php