| There are several courses of action,
you as a trader, can take to improve your chances of success in the
commodity markets.
1 - Visit a broker's office. You can learn
a great deal by watching brokers do their work. If you have the
opportunity to watch your broker work, do so. You'll get to see
exactly how orders are entered, time stamped, and reported back to the
broker and customers. This will further your understanding of
different types of orders, when they are used, and how to use them.
2 - Ask questions. Be sure to ask questions. If you know
other traders, use them as resources to learn more. If you open
a trading account, ask your broker questions. You'll learn more
by asking questions than you will from any book. Best of all,
the answers usually won't cost you anything.
3 - Read some of the trade publications.
While such regular reading as the Wall Street Journal will keep you
informed on current events, it is also helpful to regularly read trade
publications such as Futures Magazine. It may not be a good idea
to take anything you read in these publications too seriously, but it
is a good idea to keep informed on industry trends and events.
4 - Do your own research.
If you have some market ideas of your own, don't be afraid to test
them. Home computer systems, historical futures data, and
analytical software are so reasonably priced nowadays that systems
testing is not as expensive a proposition as it was in the past.
If you have ideas about trading systems that merit further
investigation and development and if you have the funds to pursue this
direction, then you should do so.
5 - Consider taking a job as a runner. Many
successful traders and brokers have started as runners on the trading
floor of one or more futures exchanges. The experience has been
valuable in spite of the poor salary usually earned by runners.
If you have the opportunity to take such a job, you'll learn more in
two weeks on the floor than you can in several years of academic
studies. This is perhaps the single best way to get an education
in the futures industry. If you have the financial means to
support yourself while you take a runner's job, then by all means do
so.
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