Trading in metals is not a half hearted job. It requires skill, patience, experience, and good analysis and technique. It requires you to have good knowledge about economy and all the metals that you want to trade in. The working hours for trading in metals is long and mental alertness is very important for a smart trader. Today in a globalised economy you should be aware of political as well as financial news in order to stay ahead of the competition.Metal are very fractal in nature.That means if you see the technical chart of 1 hour or i week or 1 month or 6 months you will see very similar patterns. Hence it is very important to trade with the flow rather than against it.The bull or bear phase of metals are more often continuous in nature and one should avoid going against the tide.To be a smart trader you should first and foremost get your basics right.More often than not people tend to forget that common sense is the rarest sense which is uncommon to the common people.
Traders try to evaluate or find the top or bottom prices of a metal which is foolhardy. Instead the trader should concentrate on buying when it has already formed a bottom or sell after a top is made.For example If copper is quoted at a price of 4650 and the intra day low is 4620, than he should try to buy at 4630 with a stop loss of 4620. It is advisable to join a trend and make profits in between the top and bottom.You should be a participant rather than try to move the market. A smart trader is one who will book his profits and always try to increase his stakes with his profits rather than increasing his base capital. A smart trader will avoid averaging his losses as that can make him loose lot of money.It is always advised to book your losses and than enter into a fresh trade with a stop loss in place.A smart trader is one who is always meticulous in his approach and gives his best even when the chips are down.
The world of metal is complex and it takes a mental toll on you. A smart metal trader should have a positive frame of mind as markets can prove you wrong many times. The trader should have lot of confidence and belief that ultimately he is going to succeed. The percentage of successful traders is very less .The reaction time to understand and execute a trade is sometimes fraction of a second.Trading is like playing with fire and one should be an expert or should be very well prepared in order to succeed.A smart trader is one who will try to reduce its probability of losing money. If you can reduce the possibility by good research , technical and understanding than obviously your chances of succeeding increases.
Trading as a full time business can be very rewarding.It is not important how many times you fall but very important how many times you can rise after the fall. A smart metal trader is one who can recover his losses quickly and turn it into profits. Trading can sometimes become monotonous and one should try and avoid being mechanical.Trading in commodities is dynamic and one should be flexible in its approach.A smart trader is one who knows and understands that market is bigger and better than all the market participants combined! Finally one should never stop learning even when they are making money as the fundamentals of the industry can change with a blink of an eye lid!