Commodity investors hire a commodity broker to help with their trading. Others will invest in commodities on their own then use an online broker. It is in the best interest of new traders to find a full service commodity broker who can help them learn the mechanics first of the markets and achieve profits. Benefits A broker does a lot of research on the markets, so they are able to spot regular trading opportunities that new traders miss. Many new traders will get caught-up in the emotions of the markets and get reckless with their trading. This is a main reason why investors lose money in commodities. A commodity broker’s job...
Demand > Supply = Higher Prices Supply > Demand = Lower Prices A means of analyzing commodities and trying to predict where the prices of commodities should be trading and what they will do in the future is Fundamental analysis. The main basis for fundamental analysis is supply and demand. I like to look at commodities that are trading at multi-year highs or lows. Eventually, the picture will change and that will lead to a good trading opportunity. Supply and demand is a very simple equation, but it gets more complicated when you try to forecast prices in the future. Remember that commodities trade in cycles. Some times supplies will be...
5 FebIt means that you should trade with the trend of the market to increase your chances of success. Something like going with the flow. A trend is defined that prices are steadily moving higher or lower over a period of time. It is consider an uptrend if prices are rising over time. It is considered a downtrend if prices are declining over a period of time. Prices are more likely to continue in that same direction than reverse. You put the odds much more in your favor by trading this way. Other professional money managers trade with a trend-following philosophy and many commodity trading systems are built around trend-following formulas. You never...
5 Feb


