Commodity trading is a potentially profitable investment activity that has many advantages over other assets such as stocks. Advertisement Blog Contact us Buy now. They follow a strict trading discipline that most losing traders never adopt. Obviously, just because a broker has been operating for a long time does not mean they are trustworthy, but it is a positive sign. Commodity futures and spot prices are tracked in the market just like other assets. Identify a commodity-related stock. In fact, the way many commodities markets work is that producers and major consumers both get together with equal but opposite desires to hedge their exposure.
Commodities trade just like anything else
Unfortunately for most Forex traders, they tend to overlook an entire world of potential profit. Keep in mind that one of the biggest drivers of commodities is the value of the US dollar. This is because most commodities are traded in that currency. For example, if you are trying jou buy barrels of crude oil, you are going to have to pay for them in US dollars. So if you think about it this way, if the US dollar is very strong in theory it d take less of those US dollars to buy that oil.
The US dollar
But it’s thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker. Forums New posts Search forums. Reviews Latest reviews Search reviews. Events Monthly Weekly Agenda Archive.
Find out about this asset class and how to invest in it.
But it’s thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker. Forums New posts Search forums. Reviews Latest reviews Search reviews. Events Monthly Weekly Agenda Archive. T2W Book. Members Current visitors. Log in. What’s new. Search Everywhere Threads This forum This thread.
Search titles jake. Search Advanced search…. Everywhere Threads This forum This thread. Search Advanced…. New posts. Search forums. Making Money Trading. Forums Reception First Steps. JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding. Which market do you want to learn to trade? Indices Votes: 43 Foreign Exchange Votes: 38 Commodities Votes: 15 Total voters Poll closed Oct 30, Status Not open for further replies.
I want to show you how to make money trading the markets. Naturally, it is not the only way to make money it is merely one way of doing so. If you follow what I will teach you, try the methodology tading on demo first before committing real money in a live account, gain confidence and understanding in the setups and you are patient and disciplined, you will make good money with this method. The method I am going to show you is based on price action.
It uses the price, fibonacci levels, three moving averages, the concepts of support and resistance and trend lines. From time to time it uses an indicator. It is not complicated to follow but it will take you time and effort to learn how to trade it for consistent profit. We will take things very slowly because I want to make sure that everyone fully understands the concepts as we go. Having said that, I expect those reading this to have at least a basic knowledge of the elements I have listed.
If you do not, go away and read up on. You will find a huge amount of free information on. The method I will show you is not a system with a rigid set of entry and exit rules. It is not going to tell you that when X happens, do Y. It is a method of trading based on high probability setups. It can be applied on any timeframe but I use it to make money on the hourly and daily xommodities because this is what I am comfortable. Clmmodities these are the only timeframes we will work with.
I work full time but I have access to my broker at work so I can check the charts every hour for setups. If you are not in a position to do this, then you will need to concentrate on the daily timeframe.
Both timeframes work very. I want to concentrate on one market. The methods work across every market but I think it will confuse people if many traders are asking questions of different setups in how do you make money trading commodities markets. Also, many traders don’t have access to some markets or the margin requirements to trade them are too high. As a result I am going to post a poll and over the process of a few weeks we will eliminate which market we are going to trade going forward.
While the market is being decided, are there any questions? Last edited: Oct 25, Reactions: richardkangningwolfMaxiV and 9. TheBramble Legendary member 8, 1, Just select one. I’m sure we’ll all be interested even if it’s not an instrument we personally trade. Reactions: bizmanny. Jbat Active member 5. How about the FTSE, as it’s fairly ubiquitous? Would be interested to hear your method, and learn a few things TheBramble said:. Reactions: Lightning McQueen.
One more thing I would say is that I am not commodiies to reveal some holy grail of trading that is going to blow everyone away. Most bow the experienced traders here will probably see themselves reading about support and resistance levels etc and wonder: «is this it? I will tell you now that there is not likely to be anything here that anyone trading over a year or two will not have heard of or even tried out.
However, the real skill is in how these are all put. It will start simple and we will add to it as everyone is ready. But I promise you that if you trade in the way I will show you, you will tradong money consistently in the markets. Reactions: Commodiites. Magic Moo Moeny 1 0. Being very much a rookie here I am looking forward to hearing more on this! One question re your returns, are this based largely on one market or a good mixture? I have been interested in forex trading. Looking forward for your post Cheers Fxbee.
ChowClown Senior member 2, Magic Moo said:. Testing out the validity of any methodology on demo is very important. After all, how many businesses can you «try» first without losing any money? Having said that, I am a firm believer in going live with a very small amount of money rather than working with demo. This is simply because I have heard many traders complain that although they could make money consistently on demo it all fell apart when the account went live.
Your behaviour will often change when you start to trade with real money and I think it is important to be in the right mindset from the start. One way that the «demo affect» shows mlney is that positions can become much harder to hold when you are live, the money actually means something and you are fearful of giving too much of it back to the market.
So my advice is take some small risk capital — money that you can afford to lose and put it into an account. If you are spreadbetting this is easily. Don’t worry about the reputation of the broker. We are not scalping the market with this methodology and we are not trading news. We are placing orders either based on hourly or daily bars. I have used almost every broker out there — including the ones that all get a bad rep on here — and never had a problem with them relating to this kind of trading.
There are also direct market accounts that will let you trade at any size you want. I yu Oanda allow this on Forex. The other alternative is to get an account that offers you a free bonus. Then you have real money from the start but no risk in your starting capital. I had this without needing to put any money in or make a trade first but they may have mpney the rules. It is worth having a look round to see.
At any rate, get yourself an account and make sure you have access to decent charting. Reactions: JillyB. JillyB Established member Sick of dodgy spread betting companies! Similar threads. How to make money trading the FX market Started by Mr.
The US dollar
Equities are said to be less prone to ho price swings than futures. Many early commodities trading markets came about as a result of producers coming together in their common. Contracts for Difference CFDs. Successful traders have usually paid their dues by learning how to trade commodities properly. More opportunities for growth. By Chuck Kowalski. You know that you’ll need 5, bushels of corn, but you don’t want to have to deal with potentially higher prices if poor growing conditions result in a smaller total crop. A company can see its stock fall dramatically if its commodity-producing assets don’t deliver the goods that investors expect — even if the commodity price itself is soaring.
Comments
Post a Comment