Category: 
March 4, 2009
Since the advent of the internet commodity trading has grown by leaps and bounds and just about anybody with a computer and a few spare dollars can get into the market. Here’s how to make money with commodity trading.
1. Buy low-sell high. Sounds really simple but the number of investors that manage to do exactly the opposite is high. The success or failure of your investment will depend on this concept and that;s how to make money with commodity trading.
2. The only real thing on the stock market is the price of the stock and if you are planning to make money then you have to invest by mirroring the stock market itself. The market corrections are always right so follow the lead. That’s how to make money with commodity trading.
3. What goes up must come down and stocks are exactly the same. The trend will change the rule and the more it moves up or down the more extreme the move will be and that is how to make money with commodity trading
4. You can spend your days trying to figure out what the cause of the large directional moves are but you’ll be wasting your time and seldom will you find the answer. It’s all about market perception if you want to know how to make money with commodity trading if you follow this path.
5. One of the biggest mistakes the majority of investors make is thinking that stock markets are rational. If you want to make money all you need to know is whether the market is moving up or down and how long it’s been doing it for.
6. Usually some type of news or world event affects the movement of a stock or stock. The news can be months in advance and not totally clear but you should not wait to invest or it will be too late and the how to make money with commodity trading skills you have will go down the drain.
7. The trends are like lovers you need to keep them close and understand their move. It’s where all the profit or loss stems from. You will need long term trends if you want to make bigger profits and learn how to make money with commodity trading.
8. Discipline is key and without it you will not be able to make money over the long term. Sometimes you do have to cut your losses and get out. Know when to stay and know when to run.
Now that you know how to make money with commodity trading your ready to get started. One last thought. Much of your success depends on your individuality.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)
Joel Teo
http://www.articlesbase.com/finance-articles/how-to-make-money-with-commodity-trading-102151.html
Horaayy..there are 6 comment(s) for me so far ;)
Are there people making money trading commodities ?
How does one become a commodity trader ? Can one become really good at it ?
My husband tried this. Didn't turn out well and I would not advise trying this unless you know you have money you can afford to lose.
References :
You can trade commodities just like stock. You just need to know the symbol of them. I actually prefer to trade commodities over stock because they have no earning or "sudden surprises" Like a government investigation or something.
References :
http://www.stocks-simplified.com
Yes. I am. My partner and I have made 1000% since last may. We trade options on oil and silver futures. Because of leverage you can make insane returns.
We are in the midst of a perfect storm in the economy. The federal reserve is a corrupt organization. Its a private NON GOVERNMENT organization that is in charge of printing the money supply. They manipulate the economy by increasing the money supply and then contracting it. they make money both ways. They are the cause of depressions and inflation. Currently they are expanding the money supply resulting in inflation. This is pushing up prices for all commodities. Eventually they will pull the plug creating a depression.
Unfortunately people are ignorant and stupid. practically everyone is illiterate and no one studies history. The federal government could erase the national debt in a year or 2 and fix the economy virtually over night if they printed their own money and circulated it instead of buying central bank notes (look at a paper note). We pay interest on the money we borrow from the central banks and this compounds. This eats up a HUGE amount of the tax we pay. This could be eliminated overnight if we did away with the central bank fractional reserve system we have.
Oh, and by the way. We are in peak oil. this means we are at the limit of how much oil we can extract from the ground. this is why oil prices are increasing. In the next few years production will start to decline resulting in skyrocketing prices. ($300 plus soon) The economy as we know it will enter into irreversable decline at the same time as the fed pulls the plug. We should have been investing in alternative energy for the past 30 years. But we didn't and its too late.
I'm buying oil and silver contracts with every cent I have. I've maxed out my line of credit and 3 credit cards I'm that sure. I'll make 200,000% in the next 18 months. I'm going to exchange my money (which will collapse) for gold and land. Then I'm off to a self sustaining ranch/farm in a safe location. I expect that 2-4 billion people will perish within a generation.
Fortunately everyone will dimiss this as crazy. But remember what I said, because it will happen.
References :
Money masters on you tube
Peak oil- google search
die off, limits to growth- google search
1) Yes. (Billions)
2) MBA (Ivy League) is usually a good way to start.
3) Yes.
References :
Yes there are many people making a very good living trading commodities,
You can be good at anything, if you are willing to put a mjor effort into it.
Start by educating yourself about commodities, there are many websites that provide free information. Just have to be ambitious enoght to go look for them.
In this business, no one hands you any thing, just have to go out and bust your butt working for it,
References :
been there done that