Market Commodities

MARKET COMMODITIES
By www.CandleStickForums.com

www.CandleStickForums.com
What are the market commodities
that I can trade in?

Market commodities, just in
agricultural products, include corn,
wheat, soybeans, rice, and oats.

However, there is more to the
commodities market in crops than
just the grains listed.

Corn includes mini-corn, corn swaps,
and corn calendar spread options.

Wheat also includes mini-wheat,
wheat swaps, and wheat calendar
spread options.

Soybeans are the same but you add
the same mix for soybean meal and
then soybean crush.

The commodities trader needs to
keep commodity trading charts on
each commodity that he or she is
dealing in.

Speaking of the use of charts for
commodities trading, it brings us to
the oldest recorded method of
charting and predicting commodity
prices which is still in use today,
Candlestick trading.

Active traders in market commodities
may wish to follow more than just
one or two commodities.

The advantage of Candlestick chart
analysis over following columns of
figures is that Candlestick pattern
formations are easier to recognize
than the same information hidden in
dense groupings of text.

Commodity trading in rice used
Candlestick basics as long as three
hundred years ago.

Traders developed Candlestick
charting techniques that are in use
today, not just in trading commodities
but in the stock market, options
trading, and the futures market as
well.

Fundamental analysis certainly
applies to all market commodities.

If industrial production is down in
China, futures on steel products from
Australia may suffer.

The fact that the Asian economies
seem to be leading the way out of
the recession bodes well for raw
goods that are imported for Chinese
industry.

News of the weather precedes crop
reports and is a strong predictor of
yield.

However, it is rare that one person
trading commodities is the only
person with market news relative to
the analysis of fundamentals.

Because the trader does not have a
head start on the market he or she
needs to be aware of how the market
is behaving or in order to be either
bullish or bearish in the market.

What the use of Candlestick patterns
tells the commodities trader is the
sum of what all the other traders are
thinking and, more importantly, how
they are trading.

Although we all are individuals and
think that we act individually there is
predictability to groups of people and
groups of traders.

It does not matter if market
movement is the result of the
psychology of trading or just that
everyone sees the same opportunity
and reacts accordingly.

Those who get in early and buy
when the price is low will be ready to
sell when the last in to the market
arrive.

Everyone may have the same idea
but slight differences in commodity
pricing will bring about different
reactions as the market progresses.

This is the sort of thing that
Candlestick trading tactics take
advantage of.

Whether you are a newcomer to
trading market commodities or an old
hand with a successful trading
system, the use of Candlestick
basics is a valuable tool for profiting
in the commodities market.

Candlestick basics are trading tools
that have stood the test of time and
are just as valuable to day in trading
things like random length wood or
West Texas Crude Oil as they were
in creating wealth for astute rice
traders in Japan centuries ago.

Market Commodities

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