Realistic Expectations in Commodity Trading

Realistic Expectations are the ability for a trader to understand what returns are available in the market.

Most people, who trade futures, do so because they want to make a lot of money. Ironically, though, the data suggests that 90% of these futures traders lose money. What separates the winners from the losers?

Many people view commodity trading with only two possible outcomes.

1. You could make a fortune.
2. You could lose all your money.

Of course, due to the leverage available in futures trading, a certain type of trader is attracted to this win big/lose big kind of strategy.

These high leverage traders, however, who actually get an opportunity to win big, are likely to eventually lose all their money.

While, clearly, there is a relationship between risk and reward, there is also a relationship between long-term success and the trading expectations of the trader.

Futures traders who become successful in the long run approach trading as if it were a business. They separate themselves from amateurs by not drawing conclusions as to what return they're entitled to.

Successful traders ask themselves whether to accept the risks for the opportunity to earn the available returns.

Once a trader fully develops realistic expectations and accepts the available returns, his mindset takes on a new shape. It evolves from being on an emotional roller coaster to having the confidence needed to stick with a successful trading strategy.

The professional trader realizes that a realistic expectation for return and managing risk within an acceptable recovery period makes much better sense than working from a deficit. Commodity Trading Solutions offers two strategies that are set up to deliver returns in the 25 - 35% range. Of course, as you know, there is a price that accompanies this type of return.

Sometimes we tend to forget how powerful a compounded 25% return can be. A 25% annually compounded return for 10 years on an initial investment of $100,000 grows to just shy of a million dollars. How many millionaires do you know?

Our point is that most traders in their warped trading expectation strive for returns that are not available. They gain grief and lose hard earned dollars. Remember, it is not what the trader feels is acceptable that is crucial; it is accepting what is available.

The only decision the futures trader has to make is whether he is willing to play this game for what is available to him at the price he must pay for it.

Now that you understand the concept of Realistic Expectations, view the strategies offered by Commodity Trading Solutions to understand the types of returns available.

CFTC REQUIRED RISK DISCLOSURE
Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by or from Commodity Trading Solutions, LLC that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.