Commodity Options, Bond Futures, Stock Index Futures, e-mini Trading

Trade Commodities Like a Girl

 

See our article in the Fall TraderPlanet Journal!

Trade Futures and Options like a "girl"Ignoring political incorrectness and short-comings of stereo types; in our view, trading "like a girl" simply means keeping risk relatively low, even if it means similar profit prospects.  More specifically, this might infer taking quick profits if the opportunity presents itself,  shooting  for base hits rather than home-runs, and basing decisions on logic rather than pride or bragging rights. 

Naturally, not all females will behave in this nature and not all males are without these qualities but we argue that traders of all types (and genders) may be better off following these straightforward principals.  The goal is to open your eyes to a relatively conservative side of trading without eliminating the lucrative nature of commodities that lured you to the markets in the first place.

 

  • 1.                “Girls” believe that risk and reward are ALWAYS correlated?

Answer: FALSE

A majority of financial publications and literature is focused, either directly or indirectly, on the principals of risk and reward.  We are all aware of the assumed positive correlation between the two.  Beginning traders can easily lose themselves in the idea of accepting more risk in hopes of reaping handsome rewards.  

Unfortunately, in reality the relationship is all but linear.  There comes a point in which more risk may be synonymous with financial suicide, not reward.   Knowing this boundary often comes with experience as there are no formulas, or black and white answers.   If you aren't capable of determining the difference between accepting additional calculated risks and shear gambling you should strongly consider working with a full service broker before putting your money at risk.  It is important to realize that when it comes to risk, sometimes less is more. 

Continue reading in the Fall issue of TraderPlanet Journal

 


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DeCarley Trading

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***There is substantial risk of loss in trading futures and options.**