Advices and Tips on Commodity Trading

Sep 21, 2016 at 10:24
1,924 Views
43 Replies
Member Since Jul 09, 2019   33 posts
Jul 11, 2019 at 06:30

In this type of trading, commodities are traded on exchanges instead of stocks, in order to generate profits from the fluctuations in prices of those commodities such as gold,silver,wool,crude oil,agricultural products etc.

While trading in commodity few things are to be kept in mind like:
    • Incase of agricultural goods, their demand and supply.
    • The variations in currencies influence the prices of commodities.
    • The effect of inflation on the prices of commodities.
    • Donot invest in just one commodity only.Make a diversified portfolio.
    • Stay updated with the market trends.
    • When buying physical commodities,secure them in a safe place and also take insurance cover if possible.
Member Since Jun 28, 2019   11 posts
Jul 11, 2019 at 08:25
Is is not possible to just trade commodities using purely technical analysis like people do with Forex trading? Won't the same strategies that work with Forex also work with commodities?
Member Since Jul 09, 2019   38 posts
Jul 18, 2019 at 06:09
You can start trading with commodities once you have the basic knowledge about stock markets. Here, I have given some useful tips that would assist you in trading in commodities:-
1.Before you begin to trade, grab the required knowledge about the market.
2.Choose the right kind of commodity and broker depending upon your constraints like risk, budget, etc.
3.Always start investing with a low dose and gradually increase it. don’t start with a big budget.
4.Try to diversify your portfolio. Never stick to trade in only one kind of commodity.
5.Always stay up-to-date with the market trends and the current affairs.
6.Be ready to adapt to any fluctuations that occur in the market as the market is never going to be stable.
Member Since Aug 27, 2017   994 posts
Jul 29, 2019 at 08:01
lavis_book posted:
You can start trading with commodities once you have the basic knowledge about stock markets. Here, I have given some useful tips that would assist you in trading in commodities:-
1.Before you begin to trade, grab the required knowledge about the market.
2.Choose the right kind of commodity and broker depending upon your constraints like risk, budget, etc.
3.Always start investing with a low dose and gradually increase it. don’t start with a big budget.
4.Try to diversify your portfolio. Never stick to trade in only one kind of commodity.
5.Always stay up-to-date with the market trends and the current affairs.
6.Be ready to adapt to any fluctuations that occur in the market as the market is never going to be stable.

Well; what’s your leverage recommendation? As like Forex or any especial parameter?
Member Since Jul 29, 2019   11 posts
Jul 29, 2019 at 12:33
Commodities can be hard work. Very specialised it and fundamentals are a key driver. I would be very careful trying to trade more than 3 different commodities at a time
Member Since Apr 18, 2017   718 posts
Jul 29, 2019 at 13:23
Farbious posted:
Commodities can be hard work. Very specialised it and fundamentals are a key driver. I would be very careful trying to trade more than 3 different commodities at a time

You are right; fundamental analysis is the key! But my strength is the technical analysis; this is why now I am working on only the FX pairs!
Member Since May 04, 2019   31 posts
Aug 03, 2019 at 17:56
I do know something which may help here lot of users anyway for basically any reason here. There are 5 golden rules in the market very little people are talking about, see more here https://www.moneyshow.com/articles/daytraders-31667/
Member Since Aug 09, 2017   785 posts
Aug 31, 2019 at 12:44
the man who can make real money from here of course has most powerful analyzing trading knowledge including a reliable support from a credible trading broker.  
Member Since Aug 27, 2017   994 posts
Aug 31, 2019 at 16:17
The main reason of trading isn’t for only the earning; I don’t care on my monthly revenue perfectage; what I am caring is only about the working process!
Member Since Apr 18, 2017   920 posts
Sep 30, 2019 at 15:14
Imamul posted:
the man who can make real money from here of course has most powerful analyzing trading knowledge including a reliable support from a credible trading broker.  

Having a good trading environment is very much crucial; but till now you have to make sure your own trading skill first to be a consistent performer!
Member Since Aug 11, 2017   886 posts
Oct 11, 2019 at 06:12
There is nobody who is able to reduce loss completely from this volatile trading place, but taking some major steps it can be reduced sometimes. If we can manage our risk when trading practically then it is possible to reduce loss form before. So, we have to emphasis on risk management policy besides acquiring good trading knowledge.
Member Since Oct 08, 2019   25 posts
Oct 19, 2019 at 09:03
Be thorough with the basics before starting to trade. This will help you when you decide the commodities that you want to deal in. Also, don’t do the mistake of trading in a single commodity.
Member Since Aug 27, 2017   994 posts
Oct 26, 2019 at 16:07
Smith88 posted:
Be thorough with the basics before starting to trade. This will help you when you decide the commodities that you want to deal in. Also, don’t do the mistake of trading in a single commodity.

Hello; are you a FX trader or commodity trader? Or doing the both?
Member Since May 14, 2019   28 posts
Feb 02, 2020 at 10:26
You really need to make something possible out of that case anyway. You need to stop focusing on gold and silver anyway for whatever possible reasons out there, I do not really make it happen on so many - I can't explain. Try with platinum.
Member Since Jul 23, 2020   759 posts
Aug 18, 2020 at 16:35
Stay ahead of the market with news and economic calendar for dates of important data releases. Before entering the trade, determine the risk/return ratio. Traders need to constantly update their knowledge and skills.
Member Since Jul 19, 2020   34 posts
Aug 19, 2020 at 11:26
If you want to do commodity trading, you need to have proper knowledge about the market. Most of the traders lose their money because of low knowledge about the market. So, I suggest you gather all knowledge before you start you trading.
Member Since May 24, 2020   112 posts
Aug 29, 2020 at 10:46
Do not succumb to emotions and act according to the plan that you have.
Member Since Jul 20, 2020   232 posts
Sep 01, 2020 at 19:16
Very informative article. Thank you for giving me such a wonderful information. It will help all the new traders who want to start their trading.
Member Since Jul 20, 2020   341 posts
Sep 02, 2020 at 18:13
If you want to start commodity trading, you should have proper knowledge about this. Without knowledge, you can lose all your money.
Member Since Jun 16, 2020   35 posts
Oct 08, 2020 at 10:58
The first thing you need to know is that it is entirely different from any other kind of trading, like say stocks. You must make use of both technical as well as fundamental analyses. And always diversify your funds into different commodities.
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