Commodity Trading Strategies

When you got started trading in share market you need to learn basics of the trading. Here we are providing some basics of trading, which are as follow:-

·         Any time when market goes high always remember it will fall soon.

·         Without any external factor if market low then it will rise.

Basically when you start trading you hear mostly that whenever market is high, this is better time to invest, but according to us that is not safe time to invest in shares because it doesn’t make any point of blocking your money.

Best time for investment - when market is down, though by keeping fundamental’s in mind.

Commodity Trading Basics

This is necessary for every trader before starting trading in commodity that they learn the basics of trading of this segment.

So we are seeing that Commodity Prices move higher and lower, it is because of developing political, economic and weather issues stirring every day around the world.

Before starting trading in commodity the first question which is rise in our mind is what is this?

So it has simple answer that commodities are the raw components about everything we consume or use in our everyday life. Some of the most common commodities are corn, wheat, gold, silver, copper, oil, gas, cattle, sugar, coffee and cotton.

 Some terms used in Commodity which are as follow-

Commodity Exchange-- As in capital markets, a commodity exchange is an association that is organizing futures trading in commodities and is registered with FMC (Forward Market Commission).

Initial Margin-- It is the minimum percentage of the contract value required to be deposited by the members/clients to the exchange before initiating any new buy or sell position. This must be maintained throughout the time their position is open and is returnable at delivery, exercise, expiry or closing out.

Commodity Trading Strategies

For Commodity trading strategy is one of the best and essential backbones. Planning or Strategy is responsible for heights of Trading. The basic strategy which are used in commodity are as follow—

Trading Commodity Spreads-- A spread involves the immediate buying of one commodity and the selling of the same or similar commodity.  Using spreads often cuts down on the risk of buying a straight commodity position.

Buy Low & Sell High-- Buying low and selling high seems simple concept when it comes to trading commodities, but the lines can be unclear on whether the price of a commodity is low or high.

Using Trade lines—Trade lines are primarily used for determining the trend of the market and the trend line establishes an tremendous place to enter the market on a pullback within a trend. It also provide notice of when a trend.

Don’t Change Your Strategy—Don’t change your strategy which you use because in new strategy you lost lots of time in research and you have to start as a beginner. So keep going with your current strategy and do better in this.

Scale Trading Commodities— This has a simple principle of buying low and selling high. When trading commodities, it is often difficult to figure out when a commodity is trading at a low enough prices to buy, but scale trading has some fairly simple guidelines to find good buying levels.

Technical Analysis-- It is first important to understand the basics of technical analysis before trading commodities and then you can move on to more advanced technical methods.

Paper Trading-- Paper trading may not be completely realistic since no money is at risk, but paper trading is one of the best tools to learn how to trade commodities and futures.

List of Current Margin Rates—Broker change the margin rates according to market. So it’s good to have list of current margin rates, so it’s easy to understand their strategy.

Other Objectives, Market input, Spend analysis, Supplier analysis are important in Commodity Strategy.

Importance of Tips in Trading

As we have seen above there are lots of things in Commodity Trading which have to notice by a trader. So if you are a trader then Commodity Tips are very useful for you. Anyone who is providing you tips, notice all above point and then generate the tips which are very accurate. Commodity Tips giving you accurate results so you have to do only trade according to tips which you have received, by using those tips you can trade easily in the market.

Money Capital Height Research Pvt. Ltd is the Stock Advisory Company, a leading provider of these services Commodity Tips, Stock Tips, Agri-Commodity Tips. You can also take benefits with a Free Trial of Our Intraday Stock and Commodity Tips and Positional Stock and Commodity Calls by stay with us. For 2 Days Free Trial, please visit us at http://www.capitalheight.com/commodity-tips.php or feel free to call us at 0731–4295950.