a special note from a trader to you...
First of all, thanks for taking the time to visit our web site.
Learn Investing will be your school if you choose to take the course. But even if we never meet,
we would like to talk to you about a few things concerning commodities and trading.
"... I have been sitting here in the office today upset. Upset because I just heard on a CNBC news brief that a commodities brokerage local to my area was just brought up on charges of defrauding their customers. They misrepresented the potential risks and profits of commodities to unsuspecting "traders". ("traders" because these people probably did not have any sort of education on how to trade.) I'm upset because the report said that 109 of 120 accounts lost money.. money I'm sure these people could not afford to lose. They were lured into trading too often and unnecessarily..."
This brokerage is not alone in using the deceptive tactic of enticing their customers into over-trading.
We often warn new and fellow traders that some brokerages feel it is more important to stick their clients with as many commissions as they possibly can rather than allowing traders to act according to their own methods and risk tolerances.
So are we trying to talk you out of trading commodities? Of
course not! We love to trade - it's what we do! But let us make this clear those "traders" lost their money because they did not make their own trading decisions! They had no trading plan. This is why
we want to stress how important it is that we -- as traders -- learn to rely on our own trading decisions and trade within our own risk tolerances.