Best Tips to Start Commodity Trading

Commodity is defined as materials that are traded in big quantities, their prices and quality levels are universally applicable. Commodities include Agriculture produce like Barley, Cashew, Castor Seed, Coffee - Arabica, Coffee - Robusta, Crude Palm Oil, Cotton Seed Oilcake, Expeller Mustard Oil etc., and Metals like Aluminum Ingot, Electrolytic Copper Cathode, Gold and Crude oil etc.

To trade in commodity you need to get registered in any of the commodity exchanges. In India there are a total of 25 commodity exchanges out of which three are national level exchanges and the rest are regional. These three exchanges are Multi Commodity Exchange of India Ltd. (MCX), National Commodity & Derivatives Exchange Ltd. (NCDEX) and National Multi Commodity Exchange of India Ltd. (NMCEIL). These three commodity exchanges are national level exchanges and are fully electronic i.e., online exchanges. People can trade even from the comfort of their home with our accurate MCX Tips.

The commodity market deals with three segments and trading in commodity will surely prove profitable if traded with strategy. Trading strategies to be followed in Commodity market:

1) In commodity market the trader should follow a strategy after checking their risk tolerance, comfort levels, knowledge of the markets. Doing this will clear your mind in case of risk tolerance that up to which amount of loss you can tolerate.

2) In commodity trading you can also follow "Trend Following" strategy that most of the professional traders use and recommend. The strategy says that the prices that are in a trend have a higher probability of continuing in that direction. Therefore, the odds should be in your favor by taking trades in the direction of the trend.

3) You also have a choice you can follow "Range Trading" when markets is not in a trend. In commodity markets range trading strategy, you would sell the commodity to market when it gets to the top of its range and buy it from the market when it gets to the bottom of its range. This strategy can work very well for a long period of time with the help of Commodity Tips, but you have to be careful when the market breaks out of its ran. The person who is Trading in commodities can use these strategies and can grab profit.