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Commodity Trading System
A commodity trading system can be constructed in an afternoon or it can take months. Depending upon how complex a commodity trading system is commodities traders will be able to keep track of the necessary figures on a notepad or may need to feed data in a computer program. The basis of a system for trading commodities is using available data from commodities markets to predict the markets’ next moves. Although you can buy a prepackaged trading system, the exercise of constructing a basic commodity trading system is a useful exercise for beginner or pro. A system based upon Candlestick charting will help beginning traders and experienced traders see the market more clearly. This sort of exercise coupled with a Commodity and Futures training course will get you off to a good start trading commodities.
The exercise of setting up a basic commodity trading system forces a number of basic and important decisions. How much will you invest in a commodity market? How long will your trades last from buy to sell or sell to buy? How much will you invest per trade? What will your stop loss be? Just which commodities will you trade? Commodity trading charts such as used to view Candlestick chart formations are basic to understanding the trends and reversals of the commodities market. Support and resistance zones become clear with Candlestick charting. As a new trader engages in Commodity and Futures training the simple exercise of setting up a basic commodity trading system will help you convert training principles to good trading habits.