GOLDEN RULES - COMMODITY TRADING

Adherence is sincerely recommended to trade and achieve gains in these Speculative

Trade Markets.

Do not trade with hesitance, half heartedly or in over confidence. You may incur small but
repeated losses if you are scared of the markets or heavier ones if you are overtly brave and
foolhardy.

Be patient when your trade positions are moving in the right expected direction to extract
maximum gains and ensure the gains by improvising the stop-loss level, time and again. Do not
be pessimistic here or else you may book gains pre-maturely & may later repent on exiting early.
This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at
small reversals in panic, which in turn would erode earlier small gains & also build losses. It's not
whether you're right or wrong that's important, but how much money you make when you're right
and how much you lose when you're wrong & that makes all the difference between Winners &
Losers.

Do not be over optimistic when trades have hit the suggested stop-loss levels and make
sure you exit there. You may miss better and multiple opportunities on being stuck in deals
gone wrong leading to higher and higher losses each day.

Do not discuss your open positions with one and all. This will lead you nowhere and confuse
you more, as all would air their own views on the same (whether knowledgeable or not) and
many a times, would make your trade decisions seem as foolishly and hastily taken. If only you
would have consulted them earlier...

Do not develop a tendency of being a Bull or a Bear in these markets. There is only one
side to the markets and that is neither the Bull side nor the Bear side But ONLY the Right Side
at the Right Time. Trend is King, so follow it at all times.

Realize that you are in a bad situation and exit fast when you need to pray for relief at each rise
or fall in a trade which is leading you further in a deep pit towards heavier losses.

Follow ONLY one Analysts or Technical Advisors guideline at a time, as more guidelines
will again create a lot of confusion. You can opt for or look out for an alternate guidance when
the earlier guideline proves to be less productive or loss making, but not simultaneously.

Be honest to yourself as hoping or praying for something different, than the actual reality or
situation is nothing less than fooling your own self.

There is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight,
as assured by many to win a prospective client. YES, there are sizeable gains and high
returns for a disciplined trader and may return exactly the opposite, if not worse, for the nondisciplined. Do not enter this trade market under any illusions of getting to be a Billionaire
overnight. It will never happen. In fact all that you now possess may also be lost.

DO NOT BORROW or trade with funds that are not yours or pump in more funds by
borrowing to hold on to loss making trades. Trade only with own funds that are spare-able
and be prepared mentally in loosing even that in totality, in the worst case.

Never trade or enter / exit positions in panic. Volatility is a non-separable component of this trade
market and will be present most of the times.

Do not be a party to rumors or be guided or misled by these. Verify & double-check on the
source for genuineness.

Stay away from the people who have a habit of saying I had told you See now?. These
are the very same people who would never put anything on paper or ever trade on their own
views- with their own funds, as in reality they do not have any concrete views or knowledge.
They are mere sponges on an ego trip, who keep soaking or gathering tidbits of information from
anywhere available irrespective of their reliability, put all together and spread the newly formed
news. If what they say goes wrong, they would disappear and would be seen nowhere or if
found, might now have some stronger views and reasons for why the wrong happened as
generally these kind of people are very good convincers & are blessed with the gift of gab.
Listening to these characters and their views is very dangerous. As the wise always said: Half
knowledge is always the most dangerous, Ignorance is Bliss and Blessed are the fully
knowledgeable.

DO NOT TRY to be the TREND SETTER or the first one to know where a particular trade
will turn from. No one can possibly be, except by a sheer matter of chance, the best seller or
the best buyer so why try it? You might end up loosing a lot of money and also becoming the
laughing-stock for all. Follow the trend and make respectable gains, Quietly.

Do not enter the Commodity Markets with Stock Market trading ideas. Though both are
speculative trade markets, there is a substantial difference in both and generally have opposite
trading patterns and thumb rules.

Providing past performance records is not a mandatory rule for Analysts or Advisors, and
the same info (wherever posted) can be misleading, as the same can be manufactured by
the end of day to dupe prospective clients. Do not try to look for something that can misguide
you & lead you on the wrong path, ending up in losses - money-wise & also confidence-wise.
Upon subscription by the trader, the same people showing fantastic results on their websites, but
performing poorly in real-time may later not be available even for a discussion or may later say
that Past performances are not an assurance of any future success. So take a Trial for a
fortnight or a month (not for a day or two), do some live paper trading & only trust the live
performances. Judge the genuineness of the research quality and real-time trading support only
on the basis of live experience and not by past performance records. Most of these records could
be fakes. Better to pay for the Trial & come to the right conclusion, rather than loose a lot of
capital by trading on faith generated by looking at & getting impressed by the past performances.

Trading without a Stop-Loss & yet making gains is sheer Talent Not trying such stunts
is Intelligence. The stop-loss practice is for your own benefit as this provision has utmost
importance and is not provided on each trading ticket by the exchanges, just for the heck of it. If
the trades turn & move in the opposite directions beyond entry levels, they might further move
very fast in a volatile manner & the losses accrued, in the absence of a stop-loss, can be unimaginable. There are several things happening across the globe constantly, which affect the
price movement, direction & volumes in commodity trading, as basically they move in
accordance with demand and supply situations & are also greatly affected by the Geo-political
scenarios all over. It is not humanly possible to track each & every occurrence, watch out for
economic datas released all around the globe and understand the level of their impacts on the
trade movement & direction of all commodities, though you may be constantly updated on most
of the developments, most of the time. Many times the reaction or the impact of these
developments is so quick & enormous, that large & rapid movements in rates are instantly
triggered with high volatility, even before the news on these developments reach all over the
world. In such a scenario, you may never know as to what level these trades could go to & the
losses (though sustainable by a few) may be very large. These losses are not the only losses
that you incur if caught in such a situation you also miss out on the opportunity, the same
commodity is offering, in the opposite direction and also by other trades as most of your attention
and funds will now be concentrated and caught up on this particular trade gone wrong.
Remember - Growing wealth is important, but safe guarding seed capital is even more important.
It's easier to resist & also absorb losses at the beginning than later.

Averaging in loss making positions is a practice which is most commonly seen &
generally leads to more dangerous losses. This is also recommended by a number of
advisors, but I certainly do not recommend it. In fact I strongly oppose it. Remember YOU are
incurring the loss & not your advisor.

Putting all your eggs in one or a couple of baskets could prove to be more dangerous for
the day trader. Having a wider investment or a trading spectrum would be more effective. All
entered trades may never go wrong simultaneously but a stray one or two could and what, if you
have traded in only those? It may also happen that the 1 or 2 trades that you have entered into,
have moved in the right direction, but have not achieved the expected high results or gains in
comparison to the ones you have left out. So it is only advised and not stressed upon that the
trader should take positions in a wider range of trading / investment opportunities to achieve
better results.

Do not be biased to a particular commodity. Look at all commodities (having healthy trading
volumes) only as profit generating opportunities & not at the English name or Social status of the
commodity.

Always remember You cannot use yesterdays ideas for todays business and expect to
be in business tomorrow. Be ready to accept and implement change immediately and
constantly as Change is the only factor thats constant in the world everything else keeps
changing and its meaning is all the more true in these highly volatile and ever-changing market
scenarios.