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Successful Commodities Trading
Even the beginner can engage in successful commodities trading. Traders can make money in successful commodities trading by choosing commodities that they have an interest in and knowledge of. Commodities traders can use technical analysis tools such as Candlestick chart analysis to track and predict price changes in a given commodity. Successful commodities trading comes down to combining technical analysis with fundamental analysis. A good place to gain a firm knowledge of the fundamentals of commodities trading is with Commodity and Futures Training. Once traders have learned the fundamentals of trading commodities they will choose a commodity to trade such as oil futures or gold futures. Those with an agricultural background or interest may consider live cattle commodity trading or corn futures. Discipline, a trading strategy, and attention to detail will convert knowledge and commodity price patterns into profits for the hard working trader.
The list of commodities to trade is long. Corn, mini-corn, corn swaps, corn calendar spread options, distiller’s dried grain futures, wheat, mini-wheat, wheat swaps, wheat calendar spread, soybean, min—soybean, soybean swaps and so forth is how the Nymex list of commodities products starts. Metals traded include industrial metals such as copper futures and precious metals with some industrial use such as gold and platinum. Energy products include crude oil futures as well as natural gas futures, coal futures, and energy credits. For successful commodities trading it is important to have a strong working knowledge of ones own traded commodities. It is always important to remember that the biggest traders in the commodities markets include the producers, processors, and commercial and industrial buyers of commodities. These companies are hedging their investment risk in buying and selling commodities. Having only a passing knowledge of a commodity that you are trading puts you at a distinct disadvantage compared to someone with a background in the industry in question and decades of trading experience.
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The list of commodities to trade is
long. Corn, mini-corn, corn swaps,
corn calendar spread options,
distiller’s dried grain futures, wheat,
mini-wheat, wheat swaps, wheat
calendar spread, soybean, min—
soybean, soybean swaps and so forth
is how the Nymex list of commodities
products starts.
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It is always important to remember
that the biggest traders in the
commodities markets include the
producers, processors, and
commercial and industrial buyers of
commodities.
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Having only a passing knowledge of a
commodity that you are trading puts
you at a distinct disadvantage
compared to someone with a
background in the industry in question
and decades of trading experience.
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Despite the fact that traders are
working in markets where the biggest
players are experts it is absolutely
possible to be successful in
commodities trading.
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A wheat trader working for a
multinational grain company may work
to hedge his company’s investment
risk in grains but will likely not be
trading gold futures, silver futures,
platinum, or palladium.
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The wise trade will be knowledge
across several commodities and will
be able to trade where the action is or
avoid markets that are so volatile as to
be dangerous.
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Experience leads to success and
failure. Reviewing Candlestick chart
formations, becoming a student of
Commodity market history, and
always working to improve a
commodity trading system by review
of produces results.