Online Commodity Trading

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ONLINE COMMODITY TRADING By www.ProfitableTradingTips.com

Transcript of Online Commodity Trading

ONLINE COMMODITY TRADING

By www.ProfitableTradingTips.com

COMMODITY TRADERS OFTEN CONCERN THEMSELVES WITH LONG TERM FUNDAMENTALS IN TRADING FUTURES ON OIL, AGRICULTURAL PRODUCTS, AND OTHER COMMODITIES.

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AS SUCH THEY BUY OR SELL FUTURES THAT MAY NOT EXPIRE FOR A YEAR OR MORE.

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HOWEVER, EVEN FUTURES CONTRACTS FOR A YEAR HENCE CAN CHANGE IN VALUE IN MINUTES WHEN NEW NEWS HITS THE MARKET.

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ONLINE COMMODITY TRADING TAKES ADVANTAGE OF SHORT TERM FLUCTUATIONS IN COMMODITY FUTURES PRICES.

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WITH PROFITS IN MIND LET US LOOK AT A COUPLE OF POTENTIALLY PROFITABLE APPROACHES TO ONLINE COMMODITY TRADING.

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IS THE TREND UP OR DOWN?

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TREND FOLLOWING IN DAY TRADING APPLIES TO COMMODITIES FUTURES JUST AS MUCH AS TO GOLD, OIL, OR PORK BELLIES.

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PRECIOUS METALS TREND IN DIRECTIONS OPPOSED THE US DOLLAR, AS DO CRUDE OIL PRICES.

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OVER SHORT TIME FRAMES A TRADER CAN BUY A RISING COMMODITY FUTURE OR SELL SHORT WHEN A FUTURES PRICE IS FALLING.

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DOING SO SUCCESSFULLY REQUIRES TECHNICAL ANALYSIS SKILLS AS WELL AS AN EYE ON THE FUNDAMENTALS THAT EVENTUALLY DETERMINE PRICE.

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TRADERS WATCH MOVING AVERAGES LOOK FOR CHANNEL BREAKOUTS AND USE AGE OLD TOOLS LIKE JAPANESE CANDLESTICK SIGNALS TO HELP ANTICIPATE PRICE CHANGES.

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TRADERS TEND TO JUMP IN AND OUT OF TRADES AS THE MARKET MOVES, TAKING SMALL PROFITS THROUGHOUT THE DAY.

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DEFINE A RANGE

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ANOTHER STRATEGY FOR ONLINE COMMODITY TRADING IS TO USE TECHNICAL ANALYSIS AND A GOOD GRASP OF THE FUNDAMENTALS TO DEFINE A RANGE IN WHICH A COMMODITY FUTURE TRADES.

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RANGE TRADING IN DAY TRADING IS SIMILAR TO TREND FOLLOWING IN THAT THE TRADER LIMITS HIS TRADES TO A SHORT STRETCH OF TRADING AND BACKS OUT BEFORE HE LOSES HIS PROFITS.

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TRADERS ANALYZE FUNDAMENTALS AND KEEP TRACK OF MARKET SENTIMENT BY WAY OF TECHNICAL ANALYSIS.

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IN MODERATELY ACTIVE MARKETS THIS STRATEGY CAN WORK WELL.

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IN VERY VOLATILE TRADING IT MAY BE DIFFICULT TO DEFINE A RANGE AS MARKET INEFFICIENCY IS RAMPANT.

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HAIR THIN PROFITS

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TRADERS WHO REPEATEDLY GAIN HAIR THIN PROFITS JUMPING IN AND OUT OF TRADES ARE SCALPING IN DAY TRADING.

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THIS TECHNIQUE RELIES UPON CLOSE ATTENTION TO MINUTE MARKET CHANGES AND RAPID RESPONSE.

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TRADERS STUDIOUSLY AVOID THE OLD BUGABOOS OF GREED AND FEAR AND USE A DISCIPLINED APPROACH TO PICKING AND EXECUTING THEIR TRADES.

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WHAT IS IN THE NEWS?

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THERE ARE TWO WAYS TO PROFIT FROM THE NEWS.

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ONE IS TO HAVE A CRYSTAL BALL AND ANTICIPATE IT.

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THE OTHER IS TO HAVE THE FUNDAMENTAL BACKGROUND AND TECHNICAL SKILLS NECESSARY TO READ THE MARKET AS THE NEWS BREAKS AND MAKE THE MOST PROFITABLE TRADES.

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THERE IS ALL TOO OFTEN OVER REACTION AND OVER CORRECTION TO BREAKING NEWS.

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SMART TRADERS CAN REAP HANDSOME PROFITS FROM A TIMELY READ OF THE NEWS IN ONLINE COMMODITY TRADING.

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THEY MUST ALL BE WRONG!

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A CONTRARIAN APPROACH TO DAY TRADING WORKS IN COMMODITIES JUST LIKE IT WORKS IN STOCKS AND CURRENCIES.

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THERE ARE MANY TIMES WHEN THE VAST MAJORITY OF TRADERS RESEMBLE LEMMINGS RUNNING IN GREAT HERDS OVER A CLIFF TO FALL INTO THE SEA.

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A TRADER WHO TAKES A DISPASSIONATE APPROACH TO ONLINE COMMODITY TRADING CAN AVOID FALLING PREY TO GREED, FEAR, AND HERD MENTALITY AND PLACE PROFITABLE TRADES JUST AS THE MARKET COMES TO REALIZE ITS FOLLY AND PRICES RISE OF FALL TREMENDOUSLY.

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AS ALWAYS, ONLINE COMMODITY TRADING MEANS THAT YOU NEED TO BE THERE AT THE TRADE STATION DOING YOUR JOB WHEN THERE IS PRICE ACTION.

GOOD LUCK!

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FOR MORE INSIGHTS AND USEFUL INFORMATION REGARDING STOCK, OPTIONS, COMMODITIES, AND FUTURES TRADING VISIT

WWW.PROFITABLETRADINGTIPS.COM.