Advices and Tips on Commodity Trading

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.

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?

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.

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?

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

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!

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/

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.  

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!

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!

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.

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.

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?

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.

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.

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.

Do not succumb to emotions and act according to the plan that you have.

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.

If you want to start commodity trading, you should have proper knowledge about this. Without knowledge, you can lose all your money.