4 Traits of Successful Commodity Futures Traders

Many successful commodity futures traders share common traits. If you want to be successful trading commodity futures, developing these qualities will most likely be necessary to get there. Here are a few traits that are commonly found in successful commodity futures traders.

1. Knowledge

One of the most common traits that is found in successful commodity futures traders is knowledge. These individuals are highly knowledgeable in the futures market as well as many other financial markets. These people did not become successful by guessing and investing on hunches. Instead, these traders spent a great deal of time learning their craft and learning about the financial markets. If you want to come successful in the futures market, you have to learn how it works.

2. Dedication

Another common trait that is found in successful commodity futures traders is dedication. In order to be successful in this market, you have to be dedicated to success and stick with it. Many people try out the commodity futures market and end up disappointed quickly. They might lose a large amount of money within a very short period. After that, they give up and move on to the next thing that comes along. Successful traders also generally experienced some losses at the beginning of their trading careers. The difference is that they kept going and stayed in the market.

3. Self-Discipline

Most commodity futures traders also have a high amount of self-discipline. In order to be successful in this market, you have to be able to discipline yourself and stick to a plan. Regards of how good your trading strategy or plan is, it will not do any good if you cannot stick with it. Successful traders have to be able to look at a plan, learn it, and then put it into action. You have to stop trading based on emotions and trade based on logic. Many people do not have the intestinal fortitude that it takes to overcome emotions and trade based on a system only. If you want to be successful in this industry, you will have to develop this quality. Otherwise, you will find yourself cutting winning trades short and getting out of losing trades too early. 

4. Resiliency

When it comes to the futures market, you have to have a short memory when it comes to losses. This type of market moves very fast, and losses will be inevitable. If you let the losses get you, you will not last very long. You have to be able to take a loss occasionally and bounce back from it. If you do not bounce back well, you will let the negative emotions influence your future decisions. You may stay out of profitable trading opportunities because you are afraid of losing more money. Bouncing back from a bad trading day could be the most important ability that you can develop. 

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