Commodity Resource Corp.

Why is day trading so popular? In a word, it's seductive. There are those who believe day trading is an easy way to make a killing (but these are the people who get killed!). It looks to be liberating (but in reality, day traders are slaves to their screens). The myth abounds that one can effectively day trade with a lot less money because you don't need to worry about overnight margins. In reality, those who are not adequately capitalized will ultimately drown in the financial seas. It may look exciting, but those who day trade for excitement only end up lost and dying of thirst in the financial desert.

After thousands of day trades, I can tell you this; day trading is more demanding than position trading. It takes total focus and total concentration.

It is true that advances in technology and the Internet offer better opportunities for day traders. The democratic dissemination of information has leveled the playing field to a major extent, and today traders no longer need to sit by the phone waiting for their broker to call them with fills. Yet, the odds are still stacked against the day trader, so the big question is why do it?

Well, there are positives. The big one is that you do not have overnight exposure with its associated overnight stress. Day traders have a fresh start each and every trading day. They sleep like babies, not having to worry about Central Bank intervention or how tomorrow's USDA Crop Report might help or hurt them. Then there is the element of instant gratification which, trust me, can be very emotionally rewarding. No doubt, the shorter time frame does make for (all other factors being equal) lower risks, and without overnight margin requirements the leverage can be greatly magnified. Then again, the greater the trade activity, the greater the costs, and I am not just speaking in terms of commissions. Since slippage (price fills other than what you anticipate you will receive, or what you see on the screen when your order is submitted) is such an important cost of trading, it is imperative you find a brokerage firm that has excellent trade execution capabilities for the markets you trade. Slippage, in my opinion, is of even greater importance to bottom line profitability than fees, and it takes on an even greater significance when day trading.

In this article, I plan to share with you my 'secrets' learned from over twenty years of day trading. These secrets are absolutely essential to successful day trading. I will conclude by disclosing a simple strategy that has worked for me.

Before we get started please read & accept this disclaimer:

You can view the first two right now. You will need to register with our firm to receive all 9. There is no cost or obligation for this service. If at any time you have any questions or need assistance, just forward an email to info@commodity.com. The material presented here is asserted under the Copyright and Patents Act of 1988 and reproduction by any means is strictly prohibited without the express written consent of the author. All trades, patterns, charts, systems, advice and methods discussed are for illustrative purposes only and are not meant to be specific advisory recommendations. No method of trading or investing is risk free and past performance can never be a guarantee of future performance. Some of the information is provided for demonstration only and is not intended as an offer or solicitation with respect to the purchase or sale of any security or commodity, nor should it serve as the basis for any investment decision. There is significant risk of loss when trading commodity futures and options and this type of investing is not suitable for all investors.

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COMMODITY & FINANCIAL FUTURES AND OPTIONS; OUR ONLY BUSINESS SINCE 1983. COMMODITY RESOURCE IS A MEMBER OF THE NATIONAL FUTURES ASSOCIATION (NFA) AND REGULATED BY THE COMMODITY FUTURES TRADING COMMISSION (CFTC). CLIENT FUNDS ARE HELD ON THE BOOKS OF R.J. O'BRIEN (EST. 1914). R.J. O'BRIEN IS THE LARGEST, FULLY DIVERSIFIED, INDEPENDENT FCM IN THE INDUSTRY AND A MEMBER OF ALL MAJOR COMMODITY AND FUTURES EXCHANGES.

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