Cost To Make 1 USA Penny Cent And Expenses

Source : coin collecting enterprises 

5 Keys to Deal with Trading Psychology, Fears and Emotions

How comfortable are you dealing with uncertainty?

As volatility and uncertainty increases, so does fear. When our emotions run high, then our decision making process suffers.
It seems like the harder we try, the worse things get.

We start reacting to things instead of being proactive. Then we feel overwhelmed.

Does this sound familiar?
One of the hardest things to deal with is uncertainly.
We have strategies for managing our risk in most aspects of our trading. However, we seldom talk about or have strategies for the most crucial element, our Personal Risk.

Have you noticed the panic that is going on in the markets? Do you know people who have been a contributor to it? Do you know them intimately?
How do you manage your Personal Risk?

1. Trade With a Clear Mind

Do not make emotional decisions. Realize that emotions are emotions. What differentiates the successful traders from others is how we recalibrate our reactions to our emotions.

I was watching an interview with a surfer. The interviewer asked him what he does when a big surf comes and he goes underwater. The surfer said it was simple. “If I panic, I only have 3-5 seconds of air to breathe. If I stay calm, I have 45-60 seconds of air.”

What does surfing have to do with trading? If you panic and operate from a place of fear, you could lose all of your capital. However, if you take a moment and think about your strategies, you can have much better results.

2. Look at Your Portfolio Objectively

Think about your portfolio as if you are looking at the portfolio of your best friend. How would you advise him/her?

3. Limit Your Input

There are a lot of conflicting points of view. If we want to listen to all of them, it becomes very confusing, and the confused mind does not make a decision.

Instead of listening to everybody, pick the top 3 people that you respect and listen to them. This way, you can remain focused and have much better trading results.

4. Be In Tune With the Markets

Trade the markets as they are and not as you want them to be.

If we are not in tune with the markets and don’t listen to them, we are going to be in a losing game.

After all, hope is a lousy hedge.

5. Be In a Supportive Environment

It is important to listen to the people that we respect and are successful.

There are traders whose spouse and/or friends have little or no risk tolerance. As a result, these traders allow the fear of their spouse and/or friends to become the boundaries of their success.

Who are you choosing to surround yourself with?

Remember, not the most talented or skilled person wins the game. The game is won by the ones who can manage their Personal Risk and have a Mental Edge.

Commodities Futures Market - Hedgers And Speculators.

A popular way to invest in commodities is through a futures contract, which is an agreement to buy or sell, in the future, a specific quantity of a commodity at a specific price. Futures are available on commodities (e.g. grain, oil, metals, etc.) 

Most of the participants in the futures markets are Commercial or Institutional traders of the commodities they trade. These Hedgers may use the commodity markets to take a position that will reduce the risk of financial loss due to a change in price. Other participants, mainly individuals, are Speculators who hope to profit from changes in the price of the futures contract. Speculators typically close out their positions before the contract is due and never take actual delivery of the commodity (e.g. grain, oil, etc.) itself. 

Investing in a futures contract will require you to open up a new brokerage account, if you do not have a broker that also trades futures, and to fill out a form acknowledging that you understand the risks associated with futures trading. 

Each commodity contract requires a different minimum deposit, depending on the broker, and the value of your account will increase or decrease with the value of the contract. If the value of the contract goes down, you will be subject to a margin call and will be required to place more money into your account to keep the position open. Due to the huge amounts of leverage, small price movements can mean huge returns or losses, and a futures account can be wiped out or doubled in a matter of minutes. 

Most futures contracts will also have options associated with them. Options on futures contracts still allow you to invest in the futures contract, but limit your loss to the cost of the option. Options are derivatives and usually do not move point-for-point with the futures contract. 

Agriculture, Energy And Metals Commodities. What Are They ?

Commodities are objects that come out of the Earth such as Grains, Metals and Oil. 

Since there are so many, they are grouped in three major categories: Agriculture, Energy and Metals.

Agricultural commodities include:

• Things you drink, such as sugar, cocoa, coffee and orange juice. These are known as the soft markets.
• Grains, such as wheat, soybeans, soybean oil, rice, oats and corn.
• Animals that become food, such as live cattle and pork (called lean hogs).
• Things you wouldn't eat, such as cotton and lumber.

The Energy category includes Crude oil, Natural gas, RBOB gasoline, and Heating oil. 

The Metals includes mined commodities, such as Gold, Copper, Silver and Platinum.

 People can buy and sell commodities based on speculation. For the more experienced investor, this venue of investing can offer huge returns with very little initial investment. The risks are tremendous and not at all recommended for the inexperienced investor, but some think the outcome more than makes up for the for potential loss.