HELP FOR THE NOVICE TRADER

At Slipka Trading Group, Inc. we offer substantial assistance for novice traders. With over 90 years of experience between David, Peter, Steven, & Gordon, we can help you understand the pitfalls of trading on margin, where the leverage is usually around 20 to 1. That means a 10% change in the price of a commodity could mean a 200% loss for anyone who is positioned in a futures contract. When you trade on margin, you can lose more than you invest. Understanding the risk is important if one is to become a confident and competent trader.

No matter what trading strategy you use, it is not how you get in, but how well you get out that makes the difference between profit and loss. In all of our years of trading, it is the investor who knows how to manage the risk of trading that is most successful.

In our opinion, the keys to successful commodity trading are:

• Don’t let an adverse price move force you out of your position
• Try to use option premium income to pay for the options you want
• Have a good exit strategy that produces profitable trading ratios

For a further discussion of these important principles, give us a call. We’ll spend as much time as you need to help you understand what it takes to be a successful trader in this exciting and dynamic investment market.