Receive regular updates via email

How to find guidance for online commodities training

The creation of the Internet has opened up the door for people being able to make money from the comfort of their home in a wide variety of ways. Over the past several years, there has been an explosion in the popularity of online commodities trading. There are now many different websites that allow people to open accounts, deposit their money and begin trading commodities with other users on a global scale. The ease and speed with which people can make money in this manner has attracted millions of people to online trading. Some people have quit their jobs and begun trading at home full-time. Here is how to make money trading online.

Get the proper instruction
While some people are blessed with a natural aptitude for online trading, most people will need to learn all of the ins and outs of commodities trading before they can be successful at it, let alone make a full-time living doing it. Therefore, it would be wise for all people who are seriously interested in trading online to enroll in a course that is given by a reputable online trading school, such as the Online Trading Academy. You can review online review sites to find out the experiences of former students, or check with the Federal Trade Commission to see if the company has been associated with inappropriate business behavior. The school that you choose to give you your instruction is important. Keep in mind, trading is a risky endeavor. The possibility exists that you could lose a large sum of money very quickly if you make the wrong trade. Learning about online trading from an excellent school will teach you how to minimize your risk and make wise decisions. They will also show you which commodities to stay away from.

Talk to successful traders
After you complete your online trading course, your education will not be complete. Just because you took a few classes does not mean you are ready to dive head first into the potentially dangerous waters of online trading. It would be in your best interest to talk to people who are already successful online traders. Ideally, you should try to find people who are making a living by trading full-time. These are people who obviously know enough about the art of trading to support themselves. These are the individuals who can teach you the most useful information. Ask them how they got started. Get them to tell you some useful tips that you can apply to your own online trading.

Do Trading Systems Work?

Spend any time on the Internet researching investment ideas and you are going to run across myriads of websites trying to sell you their program, book or advice to trade stocks, options, commodities or currencies. Type a phrase into Google similar to the following: “options trading”, “commodity trading” or “Forex trading” and you will get an untold number of hits promising you easy riches of you just buy and follow their trading program.

The websites promoting these programs do an excellent job of feeding our biases and disrupting the critical thinking process. One example is FXCM.com, which provides an account for simulated forex capital markets and online training resources. For me the strongest bias I fell when reading the ads is the self fulfilling prophecy. The idea is there has to be a program out there that can make it easy for the novice to build enough knowledge to have the confidence to risk their hard earned money.

There are many ways to make (and lose!) money in the market and short term trading is one of them. Trading hits us with the promise of quick wealth, while many of the other ways take time and discipline. The truth is, learning to be a profitable trader also takes a lot of time and discipline. The successful traders I know of spent many years learning their profession and are very disciplined about their approach. The successful trader has developed his own personal system that works for him. Trading is a very individual pursuit and the herd instinct eventually leads many to crashing the market (think about housing) as more and more investors pile onto the same trading strategy. Remember the professional trader from the French bank, Société Générale, who lost his employer over $7 billion making “safe” currency trades.

The answer to the headline question is No, but with reservations. Each of us must find an investment philosophy and style that fits our personality, from buy and hold blue chip stocks or broad based mutual funds to trading coffee futures in the CBOT pits. If you decide being a “trader” is something to pursue remember these few things:

  1. No trading system will work as well in the future as it did in the past.
  2. No one can predict the future.
  3. Do not use leverage. When someone goes completely broke, it is almost always because they used borrowed money.
  4. Don’t let anyone make your decisions.
  5. Don’t ever do anything you do not completely understand.
  6. Speculate only with money you can afford to use.

Thanks to Thomas Smiklas and his excellent investing blog for the above rules.

To be an investor that beats the professional money managers is an individual pursuit. It takes time, study, dedication and effort. Even then results are not guaranteed. It is easy to let our biases color our beliefs about our investment abilities and the best tool is to know ourselves well.