No doubts you have heard this before. But I guess emphasizing this rule never hurts, what do you say?
History tells us most traders have a tendency to take small profits when they occur. But this frequently results in demoralization as you take a small piece out of a roaring bull market and later have to chase the market to get back aboard.
In addition, it has the disadvantage of resulting in high commission costs. Strive to have the courage of your convictions when the market is proving you right. By avoiding the temptation to *play* the market on the basis of fluctuations in price, you will have the satisfaction of knowing that you stayed with a market and enjoyed full participation in the profits to be made.
History tells us most traders have a tendency to take small profits when they occur.Traders who take the long-term approach to the commodity markets (*long term* in this instance, meaning anywhere from one to several months) are known as position traders. Now brokers dont like position traders. Huh??? Cause they rarely generate significant commissions for them. Imagine how a broker must feel when his client makes $150,000 and he makes $150 on commissions, hehe.
But the position traders are the ones who make a killing in commodity trading. Floor traders also make huge amounts, but their relationship to the market is somewhat different from that of an outside speculator. Among other things, they enjoy significantly reduced commission costs not available to any outside speculator. Which is not to say, that what commission you pay determines your chances to make it in this business.
Just some thoughts.