Product Description
This monograph introduces essential tools and concepts for those who would trade commodities. It describes the most important elements, tools, and concepts utilzed by successful commodity traders. Though brief, it gets straight to the heart of the matter in easy to understand language, and is MUST reading for both new and experienced futures traders…. More >>
There is no question that you can become wealthy trading commodities, or if you will, the futures market. I have traded nearly every possible commodity, including grains, metals, currencies, energies, and all the others. I have been quite successful. The key to this success is knowledge.
A great example of knowledge is understanding, and then implementing seasonal tendencies into your overall analysis. My experience tells me that commodities follow a seasonal trend. This is an essential tool to help you forecast price movements. You need to make an analysis of the commodity you are interested in. Is it following a normal seasonal price pattern? Once you establish this, you have a major clue to work with. As an example, soybeans tend to make a seasonal low in October. Watch for a trend reversal around that time. Seasonal tendencies work best in the grains market. This is only one example of the knowledge required to build a solid foundation to achieve success, trading the commodities market.
Amazingly, over 90% of all commodity traders ultimately lose. This means that 5-10% are making most of the money. Why does this happen? How does one get into this elite trading group that makes fortunes? Let us examine a few of the answers to these questions.
A major reason many people lose money trading any market, is because they tend to follow the advice or opinions of someone, who in reality, does not have a clue, when it comes to successful trading. You need to implement a proven trading plan, and do your own research and analysis.
Normal human nature tends to be detrimental for most people who venture into the trading business. Many times you must do the opposite of normal human nature, to be successful trading the markets. The golden rule of, cutting your losses short, and letting your profits run, goes directly against normal human nature. Successful trading requires you to eliminate emotions, such as greed, fear, and hope, from your overall trading process. Never underestimate the importance of psychology when it comes to trading or investing.
What I have talked about in this article is only the tip of the iceberg. A successful trading education is a long process to say the least. It requires learning the proper strategies, methods, and principles. Becoming a trading master also means, you must understand, and then implement, proper trading psychology. Fortunes are made trading the commodities market. You will need to put the time and effort in, to achieve great success.
About Author Most commodity trading experts advise that it is not right to keep changing commodity trading strategies. This is one reason why most commodity traders loose. These traders invest a lot of their time trying to find out about a particular commodity trading strategy along with gathering enough evidence that it will work. However when they begin commodity trading with these strategies there could be a few loss trades. It is a common thing for strategies to fail, especially if you are testing it for the first time in a real time environment. However this does not in any way imply that you switch over to a new strategy.
If you want to be a successful commodity trader then it is essential that your strategies are consistent as well. In other words, if you want to see sizeable profits from commodity trading, it is advisable that you choose a commodity trading strategy and use it for a long time to see if it really works. This is because the market is not always constant, moreover market condition differ often resulting in a different outcome. The general rule of a strategy is that it performs well for a few weeks when commodity trading is in a range however it then begins to fall when the market starts to trend. This is one reason why most new traders abandon systems and strategies early itself if they do not see good returns. These kinds of traders are only looking for a get rich quick commodity trading strategy; however what they do not realize is that this could be fatal in the long run.
Choosing to leave out a strategy just because it did not give any yields within the first few weeks of commodity trading is the worst decision that anyone can make. When you adopt another new strategy you will learn that the new strategy takes time to adjust and this could again result in a down period. Getting new strategies and dumping it because you haven’t found any success will prove fateful. Since any strategy takes time to start building up on profits, and as a trader looking to make the best of the commodity market you need to let a strategy give you its best.
If you are therefore looking to make profits from the commodity market then its best that you don’t skip though strategies, since changing strategies could eventually lead to a huge loss.
We all know what Commodity Trading is about, and if you are looking for a simpler way of trading in the commodities market then there is none better than Commodity Trading systems. These systems are nothing but mechanical ways of trading in commodities. However these systems have a definite entering and exiting rule for trades which every trader learns off. Learning these rules is simple as they are plugged into the trading systems program. These also help in monitoring the data as well as prices that the commodities undergo. These price triggers form the basis of the buy and sell signals of commodities in the market.
There are several professional commodity traders now who make use of this online trading system. The most important factor of online Commodity Trading system is that trading is devoid of any kind of emotion. This makes it possible for traders to only trade in commodities based on strategies that will help make it a successful trade. Implementing trading strategies that are successful will help you follow a disciplined strategy of trading in the commodities market. It also leaves behind the headache of reworking a trading strategy just so that you are successful as a trader in the commodity market. It will also prevent the trader from making wrong trading decisions and most important the ones that do not fit your style of trading
Commodity Trading systems are generally built over technical indicators and these could be either stochastic, moving averages, breakouts of 20 day highs or lows and even RSI . There are a lot of trading variables that traders use to trade in the commodities market, and any of these variables can be used to make the system robust. However if you are looking for a good Commodity Trading system you need to make sure that you choose one that is built from simple programs. Even pro traders will agree that using a Commodity Trading system that is simple is much more beneficial and easy to use than the complicated ones.
The two types of trading systems that form the basis of every Commodity Trading system is the Trend following and the range following systems. The one makes the best use of markets which are established in either downtrend or uptrend is the trend based system. The range based system on the other hand assumes that since most of the markets are not trend markets, it makes it easier to buy when the commodity is at a low range and sell when it is at a higher range.
When it comes to business of trading, taking profits in commodities is one of the more important aspects. In most of the times, it has been observed that new commodity traders are often conflicted with the emotions of fear and greed when it comes to taking profits. A successful commodity trader will ignore both emotions and use a more structured means of taking profits.
However, the commodity traders should know where they plan on taking profits on a trade and how much they plan on risking on a trade before the trade is even placed. This does not always mean a trader knows the exact prices on the risk and profit levels. A trader could have a set of rules where he or she plans to exit a trade. If certain conditions are met, the trader will take profits on a trade.
Moreover, some of the traders who are following trend will often let profits run until the market reverses. For example, a commodity trader could buy gold futures and hold on until the market breaks down below the 20 period moving averages. Once the market moves below the 20 period moving, the trader must exit the positions, whether it is a win, loss or draw. And some of the traders like to use a fixed dollar amount to take profits on all their trades. It is a very simple way to trade without trying to think too much about exit levels. Sometimes I will adjust these levels if volatility significant increases or decreases.
Taking profits at a major support or resistance level is one of the most logical types of exit to use. Support and resistance points eventually break, but the odds are that they will hold. Therefore, many commodity traders will take their profits before the market tests these levels.
The most important thing to realize about taking profits is that it is best to have a plan before the trades are placed. A lack of a profit objective will leave a trader with uncertainty and stress. This will often lead to poor decision making and constant second guessing. Finally, there are some well established and experienced stock market agents are providing these commodity tips and commodity trading tips and services to their clients. For more information and details, please do not hesitate to visit their valuable website.
The real truth about commodity trading and forex trading is that the most lose money. The reality is probably more than 90% of aspiring commodity and forex traders fail and stop trading. The reasons aspiring commodity traders lose seem to fall into the same and common problems. In 1994 I wanted to really learn how to trade. I associated myself with a college friend who owned a brokerage. I wanted to learn what successful traders did as well as learn what unsuccessful traders did. Being aware of the issues and mistakes non successful traders helped me to evolve. The goal of my blog is to try to instill in those who truly want to succeed that attributes that good traders have and how to avoid the attributes of poor trading.
The fact that so many aspiring commodity traders fail can be found in these common factors.
Commodity Trading is Easy! Commodity Trading is Exciting I do not need to prepare nor worry about when trades do not work.
First of all and I have stated so many times… Commodity trading is the hardest easiest thing one can ever do. We have all have heard stories of the trader Richard Dennis who took $400 to $200 million… only to have blown up there after… Or there is the story of Larry Williams who won a trading contest in 1987 who took $10,000 to $1,000,000. Well Commodity trading is very hard and in my case and my partners an evolvement of learning from mistakes of others as well as our own.
Mistakes such as over leverage, over correlation, over trading , failure of risk controls, lack of patience, lack of discipline and lack of a trading plan have been the demise of all too many commodity and forex traders.
If you want to trade commodities because you think it is exciting, you are in HUGE losses. Truthfully I have learned to become detached and almost an observer of my trades which are all systematically generated. I know that any one trade means nothing and that over time there will be trends and I will catch them regardless of they are up or down.
Not preparing for commodity trading is all too a common mistake. In our case, we have an entire plan thought out. All contingencies are pre thought out because in commodity trading anything can and will happen. If one does not have a thought out plan, than in the middle of trading a crisis could happen.
If you are currently trading commodities or forex unsuccessfully or you have traded in the past and are not satisfied with your commodity trading results I am confident if you are willing to be open I can show you things that I have compounded my money over time.
If you have commodity related questions please, feel free to contact me. I will be happy to answer your questions to the best of my ability.
Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
Futures trading involves risk. People can and do lose money
My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.
The question is it possible to generate 15% long term in commodity trading? The answer is yes and no. What is more surprising for some ( inexperienced commodity trading investors)…this is not enough. They want crazy double or triple digit profits without realizing they are increasing the potential for the same in draw downs.
The reality is it is very difficult to accomplish 15% over long periods of time in commodity trading and trend following.. Only commodity trading advisors and experienced commodity traders who understand risk and deal with risk on a daily basis have and have the potential to continue to generate these types of returns. However, one must realize these are not 15% every year…year in and year out… It is more like ..up 5%.. up 25%..down -4% a rare…up+42%…When commodity trading you can do the exact same thing.. meaning same system or methodology…same large group of markets…and in one year make lets 4%…the next lose maybe even -10% or greater…and then have a year in which you earn +56%. I make the analogy that commodity trading is like fishing. You can have the best equipment..and not catch fish..and once in a while you enter a school of fish and can not stop pulling them in. If one is looking to compound their net worth..the only way is to be patient…disciplined..when they do their own commodity trading or when they allocate to a commodity trading advisor. ( The basis should be trend following with a strong risk basis)
Compounding of money should be your goal if you seek to be long term successful. To give you an example
15% return on average…on $500,000 over ten years is Yearly compounding: 15.000% $2,022,778.87
Take it to the next example 20 years
Yearly compounding: 15.000% $8,183,268.70
This is the power of compounding. The fact is most private investors can not maintain the discipline when they trade themselves and even when they allocate to commodity trading advisors…. Successful commodity trading advisors know what it takes to be long successful.. patience and discipline ( with strong risk and money management). Some of them have exceeded 15% compounded rates of return.
These are just a short list
Abraham Trading Since Inception:1,740.12% Annual RoR:14.81%(VAMI)Inception:Jan 1988
Millburn Commodity Since Inception:6,544.00% Annual RoR:13.90%(VAMI)Inception:Feb 1977
Tactical Investment Since Inception:1,522.22% Annual RoR:18.92%(VAMI)Inception:Apr 1993
Clarke Capital Since Inception: 744.14% Annual RoR:20.26%(VAMI)Inception:Aug 1997
Commodity trading when proper risk management is in place offers one of the best investment potentials. Commodity trading investors have liquidity and transparency like no other investment. If you would want to take your money out of a commodity pool or managed account..usually the longest wait would be 1 month. Compare this to a real estate investment or venture capital fund.
As far as transparency… you can see EVERYTHING in your managed account.
I put my money where my mouth is. Most of my assets are in commodities. I allocate between 2-3% of my net worth per idea. Even our own pool ( which I believe has been the culmination of everything I have learned over the last 15 years) and other trend following strategies…I allocate 3% of my net worth.. I allocate to other commodity trading advisors as well ( 2-3%). My goal is to compound my way to wealth. There will be great years…like last year..and nothing ( so far) like this year. It does not matter.. I have placed myself in the position to benefit. I have compounded money for myself and my family. If I can do it.. so can you if you have the discipline and patience and let compounding in commodity trading & trend following work for you.
Andrew Abraham
www.myinvestorsplace.com
Futures and commodity trading involve substantial risk.People can and do lose money trading.
My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.
If you have read Market Wizards you would have read about Ed Seykota and his legendary commodity trading & trend following. Ed Seykota started trading commodities at relatively a young age.To put into perspective Seykota’s commodity trading results are in the ball park of 60% per annum from 1990 to 2000. He never advertised his services and was very selective in taking clients on. The majority of the investing world and quite possibly the commodity trading world had never really heard of him. Periodically he gives out lectures and teaches. More commonly one can access his web site in which one can glean his thinking..<a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=”http://www.seykota.com/tribe/”>trading tribe</a>. There is no magic. He does not know any more than any other trend following commodity trading advisor. What makes Ed different is the way he thinks. There is no magical system. It all boils down to discipline and patience. He has taught a group of other commodity traders his techniques in trend following. He has taught David Druz, Jim Hamer and Jason Russell. I am fortunate to be an investor with David Druz. Even though David learned under Seykota commodity trading, David trades differently. This is a key point. One must be able to trade his personality. Ed Seykota earned tremendous returns with his style of commodity trading & trend following but the monthly volatility was high. Seykota takes big risks and garnished big returns. This style of trading is not for everyone. As stated there are no secrets in commodity trading and trend following as far as a mechanical or trading methodology. At onset of Ed’s career he wanted to prove the concept of trend following he tested the concepts of Donchian. They proved successful and from that point on Ed has been trading. Ed learned the key was how a commodity trader thinks. He has come up with statements that resonate with me as a commodity trading advisor. Such ideas as, Do you really know the future? Nope. Do you want to avoid whipsaws? (YES, was my initial answer and learned ) if I want to avoid whipsaws…stop trading..Do I want to avoid losses? My initial response when I first started in 1994..Yes..well the answer is they can not be avoided. It is part of trading. ( too bad all of Madoffs clients didn’t realize that). Another of his great statements is Risk no more than you can afford to lose, as well as risk enough in order when a trade works you benefit. (That is why I risk no more than 1% of my account). Numerous trades will not work.. ( probably almost 60% of them) and I can live another day. As well as when that rare trade does work.. with a 1% risk I can benefit strongly and make up for all the trades that did not work. Another great lesson from Ed regarding commodity trading is to accept the uncertainty. That is very strange for most to understand. We are risking our hard earned money and working hard & most want to be right. There is no right or wrong..The trade either works or doesn’t. When the trade does not work..we exit quickly to save our ( oxygen) money..When the rare trades really work we are patient and let it run where ever it wants to with out limitations or the urge to bank our profits. I am lucky one of partners also learned with Ed Seykota. He is constantly affirming the discipline needed to succeed in commodity trading. If you want to be a winner in commodity trading my suggestion is start to immerse yourself in the thinking Ed Seykota as well as read the book Winning in the Zone… Mark Douglas..Successful commodity trading is not about finding a magic system or manager. The only holy grail is finding a system or commodity trading advisor that you understand. That manages the risk, makes themselves available to a wide basket of commodities ( I personally only believe in Trend Following), and have the discipline and patience to stick with them during the eventual draw downs. The fact is most people are not successful in commodity trading just for these 2 simple reasons, They lack patience and discipline. Compounding your way to wealth takes time. This is not a get rich overnight..but over a lifetime. Andy Abraham www.myinvestorsplace.com
My name in Andrew Abraham. I am a commodity trading advisor – co manager of a commodity pool who adheres to the philosophy of trend following.
Commodity trading is a battle between return and risk. Because of the leverage involved, you can achieve a higher rate of return than from most other forms of investment, but at a higher risk. Commodity trading is speculative, involves a high degree of risk, and is designed only for sophisticated investors who are able to bear the loss of more than their entire investment.
You should keep in mind that past performance is not necessarily indicative of future performance. Commodity trading is just one step in solving the complex agriculture problems. Interestingly the concept of futures trading started from farming when a French wine merchant started locking prices for his wine produce even before his grapes were ready.
Commodity trading is speculating on the future price movements of the basic raw materials on which global trade is based. The two most traded commodities are oil and coffee; however, all the other basic materials are also included in this market. Commodity trading is reaching an all-time high in popularity. Although many individuals are able to make a profit with futures trading, there are also those who end up losing money. Commodity trading is a big arena, just like the stock market.
Commodity trading is a risky venture and in order to produce profits takes some real education and a sound trading system. Most commodity traders seem to fight the markets in an attempt to gain profits quickly only to find the market to continue sideways or travel in the opposite direction.
Commodity trading is based on leverage, and the power of leverage is what makes people rich. Commodity trading is the one area of the financial markets where any person with tenacity, risk capital, and discipline can be highly successful. BUT there is also considerable risk of loss, particularly for the uneducated or misinformed.
Commodity trading is simply buying commodities (such as gold, or silver or platinum) as a tangible asset. When inflationary pressures are strong (and interest rates are low), these can give a better return on investments. Commodity trading is not inherently risky. It is only as risky as you want to make it according to the amount of leverage that you use. Commodity trading is a zero sum or cash business. Your trading account is settled at the end of each trading day with your trading account balance changing daily.
Obviously, unlike having money in a CD, this type of investment can lose as much or more than is gained. Another advantage of using commodities is that the commissions are much lower than with other investing, such as in mutual funds. Obviously, if you run out of money you will be forced out of the market and will lose the lion’s share of your capital allocated for that trade. In an extreme situation, such as if wheat was linked to cancer in humans, then obviously if we were long wheat we would most likely get out and take the loss.
Futures trading is economically beneficial because it facilitates better production planning in the agriculture and agro-based industries. In these sectors it is also utilised as a hedging device against violent movement in the price of commodities over a period of time which, in the case of agricultural produce, stretches over crop seasons, often from sowing to harvesting time. Futures trading grew by leaps and bounds making the most of the bull-run witnessed globally. Fueled by the rally in equity markets, stock market players jumped into commodity markets to leverage on the all round boom.
Future trading includes widely traded commodities like coffee, oil, gold, sugar or financial instruments like stock market indices, bonds, or currencies. Futures and options markets are risk management tools, helping to offset the exposure of contracting to supply a given amount of commodity ahead of harvest time. The commodity exchanges in practice seem to be less a way to spread risk, and more a way to concentrate profits for those who know the most about a market.
Futures contracts allow speculators the right to buy or sell a specified quantity of a commodity at a contracted price before an expiration date. Less than 3% of all futures contracts result in physical delivery of any commodity, the majority of all contracts are liquidated before expiration.
Do not try to trade commodities without a good foundation of commodity market knowledge. In getting started it is best to focus on just one or two commodities. That will be enough to keep you good and busy for a long while.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for a number of financial, political, and Internet business related blogs. One of them is at Commodities Futures Trading
You are considering the trading of commodities, or the options on futures as a wonderful way to supplement your income. You can even go one step further and determine that trading commodities and futures is a wonderful way to make a living. This is a great idea! The futures can only go two directions; up or down. All one needs to do is determine the commodity direction and jump on board. What could be easier?
The next logical step is to find a place to execute your trades. You begin by going to the internet to find commodity and futures brokerages. You quickly discover that there are many futures brokerages offering a number of services to the commodity trader. Through your research you discover there are three basic levels of service futures brokers provide to commodity traders, which are full-service, discount, and online futures trading. Through more intense research you find out the very cheapest means to execute your trades is through online trading. Generally speaking the majority of beginning commodity traders will opt for online futures trading because it is normally the least expensive choice. Also, there is the sense of independence when online trading because one can place their own trades, bypassing a commodity desk clerk or futures broker.
The next thing needed is to call several futures brokerages and negotiate the cheapest online commission possible. It has been my experience over the years that beginning commodity traders spend a great deal of time and effort negotiating a commission rate. I believe the primary reason new futures traders spend so much time looking for the cheapest commission rate is because it is what they understand best. By this, I mean when they were young they saw their father haggle with the car salesman to get the the very best price for the new car and mom scouring the weekly grocery ads to find the best price for needed groceries. It is what we all have been exposed to all of our life. This approach is fine for most endeavors but probably the very worst approach to take when establishing a commodity trading account. As explained earlier, pursuing a cheap commission rate is what a new futures trader understands best.
We will now explain the sensible approach to take for a commodity trader when opening a futures trading account. The very first thing one should consider once they have decided they would like to trade commodities is to find a broker that they feel comfortable working with. A commodity broker who has the years of experience, understands charting analysis for the many commodity markets, and also incorporates seasonal tendencies into their futures analysis. Many commodities such as gold and silver have strong seasonal tendencies, not just the agricultural commodities. Make sure the commodity broker you are considering will take the time to work with you, teaching you futures chart analysis, provide you seasonal information, and generally speaking, increase your overall trading knowledge, so you can become a successful commodity trader.
Please keep in mind that the leverage when trading commodities is tremendous. For example; the margin required in your trading account to hold a Corn futures contract is $2100.00. Corn futures pay $50.00 per one cent of movement. You purchase a Corn contract and it moves twenty-five cents in your favor the very next day, your profit for that one Corn futures contract would be 25 x $50.00 = $1250.00. That is almost a 60% return on your original investment, which in this case was the margin money that was required for you to hold a Corn futures in your commodity trading account. That is some significant leverage! The tremendous leverage associated with commodity contracts is the very reason why you need a well qualified, professional commodity broker to work with you, assisting you in improving your trading skills.
Finally, when deciding on a broker to work with, go to the National Futures Association website and check out the history reported by the NFA for the broker you have an interest in working with. Also, check out the Futures Commission Merchant that your commodity broker clears his trades through. This only takes a few minutes of your time and you can verify that your broker is licensed and registered with the proper authorities and does not have a history of poor trade execution.
Author: Jack Case
Article Source: EzineArticles.com
Provided by: Guest blogger
Online commodity trading advisors can be individuals or organizations that advise people on buying or selling commodities. They are registered with the Commodity Futures Training Commission. Registration for commodity-trading advisors is done through the National Futures Association, which is a self-regulated association responsible for reviewing and accepting registrations. Investing money with the help of a commodity-trading advisor can prove to be a very beneficial option. Online commodity traders are expected to manage separate accounts for each of their clients. An experienced and qualified broker can also help an individual interested in commodity trading to get a good commodity-trading advisor. Knowledgeable and trained commodity trading advisors can help people protect their financial security and invest their funds in the right commodity, which is expected to give good returns on sale. They are responsible for making the right investment decisions for clients who have a large sum of money to invest, as this kind of investment comes with an element of risk.
Commodity trading advisors are usually compensated with management and incentive fees for advising people on options, futures, and the actual trading of managed futures accounts. Managed futures are investments that permit people to access the world?s futures markets with the assistance of online commodity trading advisors. Investing in commodity trading is a feasible alternative investment, which utilizes a diverse range of financial instruments. Many online commodity-trading advisors are highly specialized and trade only in their area of expertise, which is why many people would prefer to opt for them so as to avoid the risk of running into heavy losses.
Commodity trading advisors engage in the business of advising others directly or through publications, electronic media, or writings. They are shown to have risks and returns, which are comparable to investment in a single equity. They are prohibited by law from accepting funds in the their name from a client for trading commodity interests.
Author: Jason Gluckman
Article Source: EzineArticles.com
Provided by: WordPress plugin Guest Blogger
Commodity trading is remarkable, especifically because it is possible to make large amounts of money in a short period of time. It is simply a means of trading any physical material that is exchangeable with another like item that investors buy or sell. Commodity trading is basically speculation on the future price actions of a basic raw material. Commodity trading is the one area of the financial markets where any individual with persistence, money to risk, and discipline can be extremely successful. Commodity Trading is also a way to make money fast, but carries considerable risk to your principal. Commodity trading is too risky to try without some sort of trading system or strategy.
Traders enter commodity trading with a view to making big money. Contrary to what many traders say, the mechanics of trading is uncomplicated. You can gain a thorough understanding of how the commodity markets work just by reading a basic guide to Commodity Trading. It should include how to place a trade, contract sizes, margin requirements, and more useful information for newbie traders. Short-term trading is how the majority of traders and would-be traders take part in the markets. Discover what professional commodity traders do that separates them from the losing masses. You will also want to find a firm that offers commodity traders low commissions, quick executions, charts and free quotes.
You should be advised that commodities trading is not for everybody, and if you decide to open a commodity trading account be sure you understand all the risks involved. You may make all of your own trading decisions. Or, for individuals who prefer to leave trading up to a professional commodity trading advisor, a managed account may be the better choice for them. Discuss your commodities trading plan with a commodity broker.
Commodity trading is one of the few remaining level playing fields available to traders. Commodity trading is certainly not for everyone because it can be one of the most volatile markets you can trade. If you are thinking about trading on the futures markets, please do your research and read a commodities trading guide to see if commodity trading is for you.
Author: William McWilliams
Article Source: EzineArticles.com
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