Kaufmann-Rothstein International Senior Trading Analyst Shares the Importance of Having a Trading Plan

Top Quote Planning definitely plays a pivotal role in any course of action we have in our lives and in the same way, making a commodity trading plan before getting your feet wet in the actual trading investments also offers trading advantages and benefits. End Quote
  • (1888PressRelease) July 06, 2011 - In commodity trading plans, a trader must have a set of action plan which is in consonance with his or her trading objectives. This will help you to be consistent in your main investment goals.

    Mr. Nick Beecroft, one of the Kaufmann-Rothstein International's Top and Senior Trading Analysts encouraged all traders and investors to make commodity trading plans before getting into real world of trading. He emphasized: "Having at least a basic knowledge of the commodity futures and futures trading strategies make it simpler for traders to come up with a sensible commodity trading plan. Never make your trading plan a complicated one, make it simple yet well-designed."

    Nick Beecroft highlighted some of the good qualities and significant aspects of a commodity trading plan, which are the following:

    Trading Account Size - It is typically believed to be difficult to endure in commodity trading with relatively small amount in trading account, nonetheless, with practical and wise trading strategies; one can successfully make sound profits. Avoid expanding your finances and begin with huge trading accounts. Instead, after getting enough commodity trading experience, increase your account size in a gradual manner.

    Make the best possible choice of commodity markets - With the presence of various commodity markets it is important to come up with best possible decision on which market to enter and trade. In choosing for which commodity market to trade, consider your knowledge of a certain market, trading experience as well as your risk tolerance. You can choose one or more markets depending on your financial and personal capabilities as a trader.

    Trading Strategies - One of the most important actions in trading is to have a practical commodity trading strategies in place. It is equally important to have your regular information concerning your target commodity products, technical and fundamental analysis, market trends and situation, general market information and a preferred commodity broker to help you place appropriate trading strategies. Though regular changing of trading strategies is not suggested, a regular revision as per the existing conditions is sometimes recommended.

    Risks in Trading - Always keep yourself updated of the potential risks involved in executing a trade order and try to plan the amount size you are capable to risk on it. A stop loss order is considered an ideal tool to restrict your potential losses. A stop loss order is a form of futures order which obliges you to itemize the limit of loss on any futures trade. It helps you to limit your losses and help you survive for an extended period of time.

    "Always prepare your commodity trading plan in advance so that you can immediately act on what is ahead of the markets. You can also take advantage of the advice from your chosen commodity broker," said Beecroft.

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