Commodities Research

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Commodities Research

Commodities research is a basic part of commodities trading. Commodities research may be as simple as looking at commodity news reports on Bloomberg, Yahoo Finance, Google News, or your daily newspaper before starting commodity trading. More basic and timely commodities research information comes from the US Department of Agriculture via its Agricultural Market News. This information can be found online and is often what the news services pick up and report. Within the Agricultural Market News traders can find specific reports including daily updates including the Daily National Grain Market Summary.

What traders read about commodities is for fundamental analysis. However, both fundamental and technical analysis are important for successful commodity trading. Reviewing recent and long term commodity price patterns will give guidance about future movement in commodities markets. The use of Candlestick charting can give the trader an advantage in trading commodities. A good place to start learning about trading commodities is with Commodity and Futures training.

Fundamental commodity analysis is the basis of what drives futures prices. However, as soon as the first trader has acted on new market fundamentals the market has changed. As traders buy futures or sell futures the commodity price changes. Options traders buying calls, buying puts, selling calls, or selling puts all change the market with the sum of their trading activity. Although the trader will have a firm grasp of his or her commodities research it is market fundamentals that drive day to day trading.

Rice traders in Japan during the days of the Samurai learned that price patterns repeated themselves and were predictive of subsequent market movement. The same principles that worked three hundred years ago work today with the application of Candlestick pattern formations and Candlestick trading tactics to help the trader profit from commodity price fluctuations. Commodities research helps the trader anticipate futures prices but understanding market principles helps the trader execute profitable trades.

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Commodities Research

  1. 1. Commodities Research Bywww.CandlestickForums.com
  2. 2. Commodities research is a basic part of commodities trading. www.CandlestickForums.com
  3. 3. Commodities research may be as simple as looking at commodity news reports on Bloomberg, Yahoo Finance, Google News, or your daily newspaper before starting commodity trading. www.CandlestickForums.com
  4. 4. More basic and timely commoditiesresearch information comes from the US Department of Agriculture via its Agricultural Market News. www.CandlestickForums.com
  5. 5. This information can be found onlineand is often what the news services pick up and report. www.CandlestickForums.com
  6. 6. Within the Agricultural Market News traders can find specific reports including daily updates including theDaily National Grain Market Summary. www.CandlestickForums.com
  7. 7. What traders read about commodities is for fundamental analysis. www.CandlestickForums.com
  8. 8. However, both fundamental andtechnical analysis are important for successful commodity trading. www.CandlestickForums.com
  9. 9. Reviewing recent and long term commodity price patterns will giveguidance about future movement in commodities markets. www.CandlestickForums.com
  10. 10. The use of Candlestick charting can give the trader an advantage in trading commodities. www.CandlestickForums.com
  11. 11. A good place to start learning abouttrading commodities is with Commodity and Futures training. www.CandlestickForums.com
  12. 12. Fundamental commodity analysis is the basis of what drives futures prices. www.CandlestickForums.com
  13. 13. However, as soon as the first trader hasacted on new market fundamentals the market has changed. www.CandlestickForums.com
  14. 14. As traders buy futures or sell futures the commodity price changes. www.CandlestickForums.com
  15. 15. Options traders buying calls, buying puts, selling calls, or selling puts allchange the market with the sum of their trading activity. www.CandlestickForums.com
  16. 16. Although the trader will have a firmgrasp of his or her commodities researchit is market fundamentals that drive day to day trading. www.CandlestickForums.com
  17. 17. Rice traders in Japan during the days ofthe Samurai learned that price patterns repeated themselves and were predictive of subsequent market movement. www.CandlestickForums.com
  18. 18. The same principles that worked threehundred years ago work today with the application of Candlestick pattern formations and Candlestick trading tactics to help the trader profit from commodity price fluctuations. www.CandlestickForums.com
  19. 19. Commodities research helps the trader anticipate futures prices butunderstanding market principles helps the trader execute profitable trades. www.CandlestickForums.com
  20. 20. By doing commodity research on a daily and ongoing basis the commodities trader can anticipate major market changes. www.CandlestickForums.com
  21. 21. Because commodities can vary in price over years by a factor or two or morebuying futures several years out allows the trader to enter a position at relatively little cost. www.CandlestickForums.com
  22. 22. If market conditions, such as the current drought in Russia and Europe, drive upthe price of a commodity such as wheat. www.CandlestickForums.com
  23. 23. The trader need not wait until expiration of his or her contract. www.CandlestickForums.com
  24. 24. The trader can execute a sell when he previous bought or a buy when hepreviously sold and exit the trade at a profit. www.CandlestickForums.com
  25. 25. Because grain futures can trade severalyears into the future and oil futures even farther out that is the time horizon for commodities research. www.CandlestickForums.com
  26. 26. A commodity trading system that starts with research of the commodity•fsprospects several years into the future gives the trader a solid sense of the possibilities of the commodities markets. www.CandlestickForums.com
  27. 27. Commodity futures trading thenbecomes a matter of analysis and not one of speculation. www.CandlestickForums.com
  28. 28. Commodities research will help the trader stay well grounded in the possibilities and limits of the commodities that he trades. www.CandlestickForums.com

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