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Commodity Futures Profits

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Commodity Futures Profits

Commodity futures profits depend upon accurate fundamental analysis of the commodity in question and timely technical analysis of commodity price movement. Because history repeats itself in commodity futures, traders can use time honored Candlestick analysis tools such as Candlestick charts and Candlestick pattern formations to predict the continuance of a price trend or a market reversal. Traders can use options trading in commodities also in order to have the option but not the obligation to buy or sell commodity futures if an anticipated price move happens. Commodity and futures training will help the beginner at commodity trading to learn the skills necessary to reliably earn commodity futures profits.

Commodity traders can buy and sell everything from gold futures and natural gas futures to corn futures and interest rate futures. Each commodity has its own specific fundamentals but all of them have predictable price movements when the trader uses technical analysis tools, whether computer aided technical analysis software or a pencil for a hand drawn graph. Understanding the technical indicators that predict price movements can lead to handsome commodity futures profits on any commodities exchange.

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  • 1. Commodity Futures Profits By www.CandlestickForums.com
  • 2. Commodity futures profits depend upon accurate fundamental analysis of the commodity in question and timely technical analysis of commodity price movement. www.CandlestickForums.com
  • 3. Because history repeats itself incommodity futures, traders can use time honored Candlestick analysis tools such as Candlestick charts and Candlestick pattern formations to predict thecontinuance of a price trend or a market reversal. www.CandlestickForums.com
  • 4. Traders can use options trading in commodities also in order to have the option but not the obligation to buy orsell commodity futures if an anticipated price move happens. www.CandlestickForums.com
  • 5. Commodity and futures training will help the beginner at commodity trading tolearn the skills necessary to reliably earn commodity futures profits. www.CandlestickForums.com
  • 6. Commodity traders can buy and selleverything from gold futures and natural gas futures to corn futures and interest rate futures. www.CandlestickForums.com
  • 7. Each commodity has its own specific fundamentals but all of them havepredictable price movements when the trader uses technical analysis tools, whether computer aided technicalanalysis software or a pencil for a hand drawn graph. www.CandlestickForums.com
  • 8. Understanding the technical indicators that predict price movements can leadto handsome commodity futures profits on any commodities exchange. www.CandlestickForums.com
  • 9. Commodity futures profits have little to do with the current price of acommodity, the spot price. They have towith predicting the commodity price on a future date, as much as eight years away in the case of oil futures. www.CandlestickForums.com
  • 10. Traders agree to buy or sell astandardized quantity of a commodityon a given future date, the settlement date. www.CandlestickForums.com
  • 11. Most commonly traders will exit their position a day or two before the settlement date as they are speculating in the commodity market and are notproducers or buyers of the commodity in question. www.CandlestickForums.com
  • 12. On the other hand, producers and buyers of commodities such as gold,corn, live cattle, and the like, do, in fact, buy and sell the actual commodity. www.CandlestickForums.com
  • 13. These people are hedging when theytrade commodities. Although they may well make commodity futures profitsthey primarily are interested in having a fixed price for at least part of their production or what they will need to buy. www.CandlestickForums.com
  • 14. A gold mining operation will commonlysell commodity futures (gold) for a year in advance. www.CandlestickForums.com
  • 15. This will guarantee that some portion oftheir production will earn a guaranteed income. www.CandlestickForums.com
  • 16. A milling company may buy futures onDurham wheat to guarantee a supply at a reasonable price for making pasta. www.CandlestickForums.com
  • 17. Commodity futures profits can also be gained from trading options on commodity futures. www.CandlestickForums.com
  • 18. This seems more complicated but it is simply buying calls or buying puts, selling calls or selling puts, on commodity options contracts. www.CandlestickForums.com
  • 19. The trader who buys an option will need to pay a premium and the trader who sells will gain a premium. www.CandlestickForums.com
  • 20. The buyer will have to option but notthe obligation to buy (call) or sell (put) a futures contract if the price movement of the future is favorable. www.CandlestickForums.com
  • 21. In buying options it is possible to makenice commodity futures profits without the risk of owning a contract outright when the market takes a big swingcontrary to the trader•fs expectations. www.CandlestickForums.com
  • 22. In selling options the risk is similar to trading commodity futuresdirectly, except that the trader will gain the premium. www.CandlestickForums.com

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