Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Trading has to completely eliminate fear which is emotion in a negative way of things.Also one has to detach totally from that emotion and do the trade on an analytical way.
A common error a lot of traders commit is over trading. To be succesful you don't have to trade every day.You must wait and this takes patience, for the moment when the Reward/Ratio is low. This is a good approach to trade although there is no insurance 100% that things can go wrong.
Also do not load with an amount of contracts disproportional to the capital you work with. In my personal experience and this has been for many years,If I trade for example coffee C, I only do 1 lot with a capital that leaves about 20 times $375 or $7500 available after the margin.Presently for every $10,000.00, I will only do 1 contract. And this would also adjust when the margin changes.
And not saying this has to be this way but it works for me. I have been in this coffee business all my life and trading it in the futures and options since the early 1990´s.