They know this very well because they were taught themselves. None of them would be expected to learn by experience.
Trading Truth 150
"Professional traders know
that commodity trading can be taught."
These days, successful commodity traders are systems traders, almost without exception. One way or another pretty well everything they know has been passed on to them by their employers and predecessors.
The methods used by these traders are broadly identical and similar in detail. This is not really surprising for techniques that have been gradually developed over about 60 years in a small, specialized circle.
Of course, systems traders are not noted for writing things down (who is?) and there is no great incentive for them to document what they do. The majority are secretive because they believe it will be to their disadvantage if their methods become generally known.
However there is no universal agreement on this point because other traders think it will be better for the trading business in the long run if everybody has access to the same knowledge and techniques.
Some of these more progressive traders are already beginning to 'spread the word' by producing training material which incorporates professional methods.
The advent of powerful small computers has unlocked the door so to speak, enabling anyone with a laptop computer to run the most demanding and power hungry tests.
Software of professional quality is beginning to appear, led by Curtis Faith's VeriTrader, so now there are no real remaining barriers to prevent systems trading being practiced by anyone wishing to trade his own money.
As opportunities for the individual trader continue to expand, this is a good time for anyone interested in trading commodities to learn the right way to go about it.
Anyone considering trading commodities should first investigate the products on the market that are now being produced by successful traders and study the methods employed by them - before risking his own money in the markets.
Copyright David Bromley 2006
All Rights Reserved.