Can YoMake Money At Home From Commodity and Stock Trading?by Asoka Many people are talking about commodity trading and stock trading and there is a belief rife these days that it is possible to make a huge amount of money online just by trading alone. If you want to make money and do not any idea about trading, could you too learn enough to get into this seemingly profitable business? This article aims to answer some common commodity and stock trading questions.
Trading of Commodity - Commodity trading is the process of buying and selling raw products in commodity markets. There is regulation of commodity exchanges and this is the place where you can trade raw products. If there is a standardized contract, you can buy or sell raw commodities.
The year 2008 consisted of a commodity market which had a global boom due to huge demands for raw commodities by India and China. However, things changed before the year 2008 could end. Farmers had expected the prices of crops to drop sharply. The rising demand for steel also dropped. These conditions favored the manufacturing units as the costs of input plummeted down.
What are the commodities actually being traded? Agricultural products are at the top of the list, which includes corn, oats, rough rice, soybeans, soybean metal, soybean oil, wheat, cocoa, coffee, cotton, and sugar. You can also trade livestock and meat like lean hogs, frozen pork, live cattle, and feeder cattle. Energy products consist of crude oil, ethanol, natural gas, heating oil, gasoline, propane, and uranium. Precious metals like gold, platinum, palladium, and silver can also be traded in the commodity market. Industrial metals, rare metals, and other minerals are included in the list as well.
If you're interested in commodity trading, you absolutely need to research the subject thoroughly talk to experts, read books on the subject and learn the basics of trading.
Stock Trading - Stock traders buy and sell stocks and other derivative products like options on stocks, stock index futures and options, etc. This happens in regulated financial markets that can be seen on television all the time. Traders are firms or individuals and they tend to make big profits or losses depending on the type of trading they are carrying out in highly fluctuating stock market conditions.
Trading in stocks could last either for several weeks or for a few seconds. You can be a part time or a full time trader as long as you are aware of the functioning of the system. Traders in stock have various plans that help them to make money. Due to the advent of internet, you can trade online and you need not call a broker to make a trade as in the past.
If you want to trade in stock markets, you need to take the service of a broker. By searching the internet, you can analyze the market conditions online for free when taking any decision. If you make use of the internet, you can manage your investments very effectively.
Take note of the fact that stock trading is not very easy. Traders who do not have experience and knowledge can easily lose money as there are huge risks and uncertainties in trading. You are bound to incur costs like commissions, fees and taxes.
If you are daring enough to take the risk and trade, then make it a point to study stock trading and also create a trading plan that is profitable and helps you gradually to set up a profitable business that could be operated from anywhere in this world.
Created on Dec 31st 1969 18:00. Viewed 0 times.
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