Commodity Trading Interpret and Write a Commodity Trading Plan
How Do I Trade Commodity Trading and Write a Commodity Trading Plan?
The following is a trade plan examples template of a best commodity trading plan:
JUSTIFICATION
1. Commodity Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always begin with a plan.
- Successful business planning will guide you to success, think of the commodity trading plan as a map: it is a constant reminder of how you'll consistently pull profits from the commodity market.
- Difference between a successful commodity trader & a losing one is the commodity trading plan.
2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Commodities
Consistency is important in your routine to measure how successful you're.
Keep you on target, read your commodity trading plan everyday & stick to it.
When it comes to your commodity trading plan you should think of it as a map that shows you this is what you follow, it should have clear commodity trading rules that specify when you open or close a commodity trade transaction.
Your commodity trading plan should cover all aspects of commodity trading, you should read your commodity trading plan everyday until it's on your finger tips so that when you are trading on the fast moving market of commodity you will always know what to do in every situation.
Your commodity trading plan can be as simple or as complicated as you like, but the most important thing is that you've one. By having a commodity trading plan you've an advantage over the commodities trading market, you will have better odds of making a profit than those commodity traders who do not have a commodity trading plan.
This commodity trading plan guide topic provides commodity traders with an example commodity trading plan that you can use for creating your own commodity trading plan. By now you have already written down the justification part of your commodity trading plan, If not get a pen and paper and write the justification part. Next we shall look at how to write the commodities trading system.
Commodity Trading plan is one of the secrets which can help you to improve your profits. A good commodity training guide like this one should show you how to create a commodity trading plan using a commodity trading plan which you can use as example to create your own.
One of the most commonly asked question is, Is Commodity Trading profitable? one of the techniques to make it profitable is to have a good commodity trading plan.
IF YOU HAVE A GOOD Commodity Trading PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT When Commodity Trading, YOU WILL BE SUCCESSFUL.
GOALS OF THE Commodity TRADING SYSTEM
- Ability to IDENTIFY A Commodity Trading TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The commodity system should find a compromise between the 2 Goals,
Find a way to identify a commodity trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.
FUNCTIONS OF EACH Commodity TECHNICAL INDICATOR
MA - Identify a new commodity trend as early as possible.
MACD - Identify a commodity trend as early as possible.
Determine strength of a continuing commodities trend.
RSI - Swing failure to confirm the begin of a new commodities trend.
Extra confirmation commodity indicators & tools to help determine the strength of our commodities trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the commodities trend.
Trendlines - Signals a reversal when the trend line is broken
Commodity Trading Price Action Signals - confirm the weakening of a commodities trend.
Bollinger Band - for commodity price action study
To know more about each commodity indicator & how these indicators can be used to generate commodity signal setups you can go to Commodities Trading Indicators Section
Commodity TRADING CHART TIMEFRAMES
- Main commodities trading chart time frame is the 1H.
- Commodity Trading Signals are generated on the 15 minute chart time frame.
15 Minute Commodity Trading Charts
- Trendlines (Support and Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
RULES
LONG ENTRY
Entry
15 Minute Commodity Trading Charts
- Both Moving Averages are moving UP
- MACD moving UP
- RSI >-> 50
- Parabolic SAR is below the commodity price (Support)
When a commodity signal is generated on the 1 H chart, use the 15 minute chart time frame to open and close positions.
LONG EXIT
- RSI gives opposite trading signal
- Commodity Trading Price breaks out Support Trend Line
- Parabolic SAR is hit (Trailing Stop)
RULES
SHORT ENTRY
Entry
15 Minute Commodity Trading Charts
- Both Moving Averages are moving DOWN
- MACD moving DOWN
- RSI <-< 50
- Parabolic SAR is above the commodity price (Support)
When signal is generated on the 1 H chart, use the 15 minute chart time frame to open and close positions.
SHORT EXIT
- RSI gives opposite trading signal
- Commodity Trading Price action breaks out Support Trend-Line
- Parabolic SAR is hit (Trailing Stop)
ROUTINE
- Commodity Trading signals are generated using 1H commodities trading chart time frame and executed using the 15 minute chart time frame.
- commodity trading signal to be executed immediately rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies & online commodity brokers are open for trade transactions. Use this to come up with a suitable commodity trading schedule.
Example Trading Plan Template
Commodity Trading Tips - You can use the MT4 Commodity Trading Software Platform to save this commodity trading plan example as a commodity template on the MetaTrader 4 platform - that way you do not have to lay it afresh every time you open a new commodity chart. If you want to learn how to save a commodity template on the MetaTrader 4 platform, read: MT4 Commodity Trading Platform Tutorials.
MONEY MANAGEMENT RULES
- Day trading - Low risk High return method
- Trade when I have a high risk:reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Pips
- Never transact beyond 3% of commodity trading account equity
- Never risk more than 2% on a single trade
MINDSET/PSYCHOLOGY
- Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the commodity trading system!
It is not to decide which signal looks promising.
That is the job of my commodity trading system - which has a set of rules that tells me this is what I follow. Don't get caught up in commodity price action making rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently & wait for my commodity trading strategy to show that it is time to enter or it is time to exit. And then with great focus I execute the commodity trading plan as outlined.
Taking trades not indicated by the commodity trading system, second guessing the commodities trading system & not taking signals given, hesitating & getting in late, anticipating & getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my commodity trading rules accurately.
More you develop the ability to step back from commodity price movement & watch the commodities trading market dis-passionately, waiting for a trading signal, the easier it will be to witness fluctuations of your emotions without you getting sucked in to them & allowing them to throw you off your game.
WEAKNESS
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your trading. This is first step to help you overcome these weaknesses. Use Commodity Trading psychology to help you overcome them.
NB: by writing down your weaknesses you will start recognizing them as you make progress in commodities trading, once you do this you will start to avoid this mistakes & your trading results will improve.
GOALS
- To focus on exit just as much as I do on entry signals.
- Always protect my commodity trading account using stop loss orders, commodity money management methods, follow with the commodity trend direction & always following the rules of my commodity trading strategy.
- Never second guess or go against my commodity trading strategy. To always keep up my discipline.
- Follow all the rules of my commodity strategy and never break them.
- Trade fewer times and execute all my commodity signals correctly. Trade what I see, what the commodity trading system + commodity charts are telling me.
- Sit patiently & wait for commodity trading signals from my commodity trading strategy.
- Achieve consistent profitable results before opening a live commodities trading account.
FOLLOW THIS SYSTEM
This is the most important part of creating the commodity trading system.
Always follow the rules
Stick with the rules
Be disciplined & patient enough
Commodities Trading JOURNAL
Log all my commodity trade transactions in a commodity journal so that to track my training progress & improve my commodity trading execution methods.
The commodity strategy uses momentum to determine the trend of any commodity.
Even if you are new to Commodity Trading market & you don't know how a commodity trading system looks like, this commodities system example illustrates to you how a commodity trading system strategy should look like, the commodity tutorials described in other sections of this learn commodity training website will also explain further different aspects that you need to learn.
Hence, the objective is to help you create your own complete commodity trading strategy that is if you're looking for one, by showing you one that is already complete. In fact you can just use this commodity trading plan examples as it is, or make a few adjustments so that it fits your commodity trading style.
The aim is to help you improve your commodity trading results by using a commodity trading plan that is written, and another advantage is that this commodity trading plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the commodity market.
Read this commodity trading plan training lesson about developing a commodity trading plan of your own, along with the learn commodity courses and strategies listed at top of this learn commodity trading guide.
The Most Beneficial part of using this commodity trading plan is the "Money Management Part" you will learn how to commodity trade & minimize risk, which is the most important thing when it comes to the commodity market trading.
How Do I Trade Commodity Trading and Write a Commodity Trading Plan
