With The Volitile Markets Of Today You May Want To Learn About Stops

Room Full of Traders

If you ask a room full of commodity traders which skill is the most important in becoming a successful trader I wonder if anyone would respond the ability to take a loss? I doubt it, because taking a loss is considered a negative. Who wants to talk about the right way to lose money? I think every trader should!

I believe that possessing the mental toughness to accept a loss, and the ability to know when a loss should be taken, are traits I believe to be at the foundation of being a profitable commodity trader. Let us understand each other right now. If you trade commodities some of your trades, if not a majority, will be losers. If you are to be a profitable trader, I believe you must recognize this basic fact and have a bad trade exit strategy determined even before you put on any trade.

Learn more about stops.