This excerpt discusses the importance of risk management for commodity traders. It notes that traders must limit their downside risk on each trade to 2-3% of their account size to survive long-term. Strict risk controls like stop losses and position size limits are crucial to give traders the ability to be wrong on some trades without being knocked out of the market. Overall success depends on traders having an edge as well as disciplined risk management practices.
This excerpt discusses the importance of risk management for commodity traders. It notes that traders must limit their downside risk on each trade to 2-3% of their account size to survive long-term. Strict risk controls like stop losses and position size limits are crucial to give traders the ability to be wrong on some trades without being knocked out of the market. Overall success depends on traders having an edge as well as disciplined risk management practices.