Commodities Trading
You probably think there’s a huge profitability in commodities trading and I guess that’s also the reason why you ended up on this page. The thing is, you’re right.
On the other hand commodities trading has been one of the easiest way to empty ones pockets. For that reason nobody should start trading commodities without having some knowledge about this market.
Why study commodities trading
I began looking into commodities in April 2001, more by coincidence rather than as a result of a serious planning. Now almost 10 years later I’ve studied a lot of material, some good and some not so good. To test my knowledge I even took and passed the series 3 test in 2007, thus qualifying as a Commodity Trading Advisor.
I’ve found that during my studies of the commodities futures markets, I’ve not only gained knowledge of how to analyse and trade commodities, but it has given me quite a good insight into trading in general.
If you’re serious about trading commodities, then you need to acquire knowledge about the fundamentals of the futures markets, trading psychology and market analytical methods. If you don’t, you're bound to loose your shirt in only few minutes.
There is a huge amount of dollars exchanging hands in the commodities markets and only a portion of that amount can set a person for live. That’s why commodities trading is an attractive option for investors and traditional stock traders.
From an emotional point of view, commodities trading can also be quite giving. A good trade can give you a rush that you’ve never known before. As a matter of fact, commodities trading can be such an emotional rollercoaster, that anyone can go through the entire emotional sphere within days, or even less.
But this can also be a cruel and dangerous place to be, if you don’t have the necessary knowledge as a base for your commodities trading. That’s why it’s necessary to study
This website
I’ve maintained this website since 2007 and done some experiments in regards to its content. In the beginning I wanted to make this an informational as well as an educative site. Then I began focusing on publishing commodity related news, but the cost and lack of interest forced me to abandon that experiment.
Now, I’ve come to the conclusion that a commodity trading educational site is probably the most logical thing for me to do as that was my original plan anyway. The idea is to focus on those that are new to commodities trading and have little knowledge of the markets as well as those with litle to medium knowledge.
Most of my material will be free, as I believe you have to give to get. Some material will be charged for, but that will mostly be a third party affiliate material as I will be offering third party material that I believe could be interesting for those wanting to profit from commodities trading. I might also sell some larger publications that don't fit as a regular posting on this page.
If you’ve got any questions, feel free to post it on the contact us form and I will answer you as soon as I can.
I would also like to hear any ideas from you about what you would like to see on this site. It’s more logical to publish things people want to read, than to publish things they don’t want to read :)
Hope you will like what you find on this site, but old material can be found through the menu at the top of the page. The markets being ever changing, they might be less relevant to present market situations, but the information is always valuable from a historical research point of view.
How To Trade Commodities
How to trade commodities is a question that comes up quite quickly when people start to be interested in commodities and not without reason. Trading commodities can be done in different ways, all depending on the time spent and risk taken.
One of the first thing to take into consideration when looking into commodities, is that they are traded, seldom invested in. Due to the nature of the commodities markets, investing is not possible except through funds. Nobody buys a futures contract and then waits for the kids to go to college.
What Is Commodity Trading
For those wondering, what is commodity trading, the shortest answer would be “it’s the buying and selling of raw material”. This of course is the short answer, but those interested in the longer and a more detailed answer, might want to read on.
Gold drops on stronger dollar
The US dollar gained on the euro after Fed chairman Ben Bernanke said the risk of a substantial downturn in the US economy had diminished and Treasury Secretary Henry Paulson said that he would never rule out currency intervention. As a consequence of stronger dollar, gold prices have been getting lower, mainly as gold has been seen as a hedge against inflation and weaker dollar.
Oil falls after a record surge on Friday
After climbing nearly $11 on Friday, light crude oil fell to $135 after recovering some of the loss and climbing to $137. No single reason seems to be for the surge in price on Friday, but speculation about Morgan Stanley's comment that oil could reach $150 as early as July 4th, may have had some thing to do with it.
Lower commodity prices seen as a buying opportunity
Even though the drop in commodity prices has been considerable some analysts claim that there might be some more to come. Some analysts expect commodity prices to drop 10 to 20 percent, but that the overall bullish trend in commodities will be intact and higher prices to follow. Any such drop would draw in new investors and fresh funds.
Most analysts point to the emerging middle classes of countries like India and China. These people are getting more and more demanding and the desire for luxury and better lifestyle has prompted the increased use of commodities, like oil and metals.
