Tag Archives: commodity

Market Analysis

A Few Benefits of Online Commodity Trading

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Commodity Trading has now gotten even simpler; this is because of the ease that online Commodity Trading brings traders. The execution is much quicker and the results too can be seen instantly. You can execute your trade with the help of an online broker who will also charge you commissions that are comparatively lower. Moreover trading online in commodities will give you a sense of independence. However if you are looking at trading online in commodities then you also need to be wary of hidden dangers that could spell disaster for you.

Let’s look at why online Commodity Trading is beneficial.

You could look at trading with commodities online as a one stop shop; you need not go hackling looking for things that will help you in your trade. Everything is practically on your online trading account, allowing you to trade better and efficiently. Online brokers have an advantage since they also get charts, quotes, technical analysis, research, futures news and lots more to help them trade better. The traders are however in control of the trade in the overall aspect since they make the end trading decisions which is implemented by the trader after analyzing strategies and charts provide by the online Commodity Trading system. This is something that was not accessible to retail commodity traders.

If you have someone else managing your trading account then there is no need for you to trade online in commodities. However for those who want to take things on their hands and yet be successful at Commodity Trading can opt for online trading systems. The executions are instant and are not like the old times when you had to call your brokers and then wait for fill prices that suit you.

Another befit that makes online Commodity Trading successful is that the commissions are comparatively much lower. The great news for beginner traders especially those who are new and do not have much to spend on commissions is that they can now trade in their desired futures contract with as low s $10 for a round turn. Because of low commissions you will now find that it is feasible to trade in commodities and strategies for spreads, short term and intraday trading too are generally on the spot. If you are interested in sophisticated Commodity Trading in futures then you can do so with a higher rate of commissions. However the online future trader will only cost you as low $30 allowing a trader to have a much wider range of profits on trades.

Market Analysis

Tips For Commodity Trading

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There are lots of people in the world who are very interested in the commodity trading and want to maximize their profit within a short time. But the fact is that there are so many people who know about the commodity trading.. Here is some tips for the beginners who haven’t any idea about this and know noting how to trade.

First of all, you must have to create an account within a reputed broker registered to NCDEX or MCX. After creating an account you need to choose the commodities like as gold, crud, silver etc. that you are willing to trade in. When you finally select your commodities you have three to six contracts open that will be invalid or expired after the certain period of time. Then you required to set an order to purchase or sell or you can do both at the same time. In the commodity trading there is least trading size so you need to purchase or sell certain size. Every commodity trading is solely margin based and has a specific margin price by the exchanges that must be paid for your trading. Generally, the margin value varies within 5 to 20% and do change by the exchanges periodically. Change happen only when the market becomes excessively speculative.

In the commodity trading most of the investors want to sell or buy their contacts at the eleventh hour of the market. They wait and hope that their profit will be maximized significantly by that. That is really bullshit. This happens because of lack of knowledge regarding the trading method in the commodity trading. Before buying or selling your contracts you must have to calculate your profits and its future prospect as well. You should only sell or buy at a convenient time when the calculation favors you. You may take risk by waiting till the deadline of your contracts when it undoubtedly confirms your profit otherwise you may have to face a great loss. Your profit and losses will be automatically debited or credited from your account. If your account faces any kind of shortage of money, the broker asks you for the cheque. Another most important tip for you in the commodity trading. is to alter your positions. If you any how fail to do that, you will be penalized by the exchange.

If anyone read all these tips and apply them perfectly there is no way to be failed in the commodity trading.

Market Analysis

Investing in Commodity Mutual Funds

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when we invest in commodity mutual funds, they generate good returns for our investment when compare to other investments. The latest buzz on commodity mutual funds makes it more attractive for the investor to invest in it.

It also helps to diversify the portfolio and minimize the risk when compared to investing in equities. By this we will be able to spread the risk factor and that can generate good returns for any investor.

Investing in commodity mutual funds are seen as a great way to moderate one’s self against inflation as the prices of the basic commodities go up and push up the inflation index so is the case with the commodity mutual funds pricing. This games using numbers can be really beneficial to the investor.

These funds are headed by professional fund managers who have vast experience in analyzing the performance of commodities and commodity mutual funds. They exactly know what is going to sell in the market. They are very clear about the market conditions and analyze the demand and supply for certain commodities and also the trade that will be carried out. This kind of in depth market analysis enables them to be able to get the most out of commodity mutual funds.

When an investors plan for investing in commodity mutual funds, they know that the risk involved is very less when compared to other form of investments as the markets tends to remain far more stable. Also the commodity mutual funds do not have a specific tie in time or expiry date.

Market Analysis

Commodity Tips

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The commodity market is becoming more and more in focus and the progress and demand of these markets are increasing and traders are getting more and more benefit by investing in them. There are many commodity tips available for anyone who is interested in commodity trading. These tops can be used for commodity trading as well as any other trading that you might be interested in the stock market. So read and follow these tips carefully to earn money fast and get good income.

There comes a particular time when it is best to stay away from trade. Being a trader, you must always keep the fact in mind that trading and stock marketing has a downfall and a declining phase during which traders must stay away from trade in order to prevent themselves from any sort of loss.

You must always be in good control of yourself and your emotions and never trade when you are in a high mood because anger management and a good mood are very important while trading and dealing. This is important because when you are emotional, you are more likely to make blunders and suffer from loss.

You must also diversify your portfolio by dealing with different families of contractors. You can investigate and be sure that the different contractors that you are working with are not linked so that you can add more diversity to your work. The best option is to look for the high probability trade and then invest in them.

If you are receiving any hot tip from the mass email and it suggests you to invest in a hot commodity from the media, its better that you stay away because either way, it’s too late. Profits have already been made in these types of trade and there is no chance for any other trader to make money and you are more likely to lose money via these trades instead of gaining anything.

Every investment and trading must be a form of learning experience for you. If you succeed, it’s a good sign and you must continue what you are doing and keep it up. If you lose, it should be a learning experience and you should improve and work better around your strategies and move on. Remember, stock marketing and trading does not come with any guarantee and you might lose from time to time. But a good trader always learns from it and moves on.

Market Analysis

Commodity Trading System – Know The Basics of it

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We all know what Commodity Trading is about, and if you are looking for a simpler way of trading in the commodities market then there is none better than Commodity Trading systems. These systems are nothing but mechanical ways of trading in commodities. However these systems have a definite entering and exiting rule for trades which every trader learns off. Learning these rules is simple as they are plugged into the trading systems program. These also help in monitoring the data as well as prices that the commodities undergo. These price triggers form the basis of the buy and sell signals of commodities in the market.

There are several professional commodity traders now who make use of this online trading system. The most important factor of online Commodity Trading system is that trading is devoid of any kind of emotion. This makes it possible for traders to only trade in commodities based on strategies that will help make it a successful trade. Implementing trading strategies that are successful will help you follow a disciplined strategy of trading in the commodities market. It also leaves behind the headache of reworking a trading strategy just so that you are successful as a trader in the commodity market. It will also prevent the trader from making wrong trading decisions and most important the ones that do not fit your style of trading

Commodity Trading systems are generally built over technical indicators and these could be either stochastic, moving averages, breakouts of 20 day highs or lows and even RSI . There are a lot of trading variables that traders use to trade in the commodities market, and any of these variables can be used to make the system robust. However if you are looking for a good Commodity Trading system you need to make sure that you choose one that is built from simple programs. Even pro traders will agree that using a Commodity Trading system that is simple is much more beneficial and easy to use than the complicated ones.

The two types of trading systems that form the basis of every Commodity Trading system is the Trend following and the range following systems. The one makes the best use of markets which are established in either downtrend or uptrend is the trend based system. The range based system on the other hand assumes that since most of the markets are not trend markets, it makes it easier to buy when the commodity is at a low range and sell when it is at a higher range.