How to make money from commodity market?


This is all about how can you make money from commodity trading rather than trading in equities or stocks. how commodity investment is better and safer than equity investment? So read this article to know why Commodity trading is more choice of a trader.

This article is about why and how commodity trading much better than equity trading.
Generally when we talk about trading people will think about stock of any company ( generally common trader think about blue chip company and good trader think about diversify investment).

How Commodity trading is much better than Equity trading

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Equity market is well known among all type of traders because of old ness but now days it is known as an investment opportunity not a trading opportunity.

who are very new to trading can not judge the stock market as it is totally depend upon their annual results, upcoming projects, future plans, profit earned by the company etc . But beginners should always trade in equity market as there is less chance of loosing all your money.

But in commodity trading we generally know that when ever price of a particular commodity fall that is a good chance to buy and when the price is too high that is the best chance to start selling those commodities as they never stay at a particular price and the ratio of volatility is too high than equity.

It never hold a particular price or does not wait to rise or fall for a year. When ever the demand increases the price goes up and when demand decreases price started falling down and one can get benefit of this fall and rise.

So without doing too many research you can have idea about the price fluctuation by just seeing the last year or last month high/low of that particular commodity.

But the main thing is Trader should follow some rules before start trading in commodity like should use only 30% of capital, no need to diversify can trade in particular commodity and the averaging formula can help to make profit in commodity where there is less chance for averaging in equity market.


Comments

Author: SURAJ10 Apr 2013 Member Level: Bronze   Points : 2

But tell me that how can we know about any commodity goes up or down. If you tell that how to find that any commodity goes up / down movement then we can trade easily. Most of the people cannot know that which commodity goes in which direction.



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