Commodity Trading Systems

Commodity futures have many advantages as an investment compared to other investment types such as bonds, real estate, or stocks. So now is the time to learn how to profit from online commodity trading.
The main attraction is the ability to make large profits over a short period of time. Leverage is what makes it so profitable so learn how to profit from online commodity trading using leverage.

Just do a search online and you will be able to find all kinds of real examples of accounts that have had remarkable returns in a very short period of time. And you can lose money just as fast if you don’t trade right. That’s why it is so important to learn how to profit from online commodity trading.
It’s important that you get out of your trades quickly if they start to slide against you. Don’t wait for them to tumble. You can learn how to profit from online commodity trading by taking a small loss and reinvesting.

Once you learn how to profit from online commodity trading you can earn tremendous returns in no time. Combine that with the lower commissions assigned to commodities over futures and you’ve got a win win situation. The commissions are a lot lower so you can save a bundle and the profit margins on commodity trading are much higher.

Now that said even though commodity trades can bring larger profit margins you need to learn how to profit from online commodity trading with commodity speculation because it offers many advantages. If you have sufficient margin you can spend your profit from the trade without closing out your position. With other investments you have sell before you reap the benefits of the gain.

Commodity trading isn’t hard at all. In fact it is one of the simplest markets to play in and learning how to profit from online commodity trading takes little time at all. You can easily between all the segments of the world economy spreading your wings and your profits.

Once you learn how to profit from online commodity trading you will want to make sure that you know all of your tax advantages. Tax can run you 60% if you aren’t careful. You see there’s more to the game than just learning how to profit from online commodity trading. You’ll want to talk to your accountant.

When you are ready to get involved in the commodity market you can how to profit from online commodity trading.

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-profit-from-online-commodity-trading-103097.html

http://www.etoro-software.com
Download Best Forex Trading Platform, This ultimate online forex platform include many great features (accurate real time, forex traders chat, forex cash prizes, bonus, and more)Download forex trading platform NOW!

Duration : 4 min 26 sec

(more…)

Technorati Tags: etoro

http://www.informedtrades.com/ A lesson on the advantages and disadvantages of position trading for active traders and investors in the stock, futures, and forex markets

Duration : 3 min 55 sec

(more…)

Technorati Tags: positiontrading

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

As you might know, the foreign exchange market is the largest financial market in the world. There are over $1.2 trillion changing hands every single day. Compare that to the $25 billion a day trading volume at the New York Stock Exchange. In fact, it is three times larger than all of the US Equity and Treasury markets combined together.

The popularity of foreign exchange market has accelerated rapidly in recent years as the prospect of 24 hour, high leverage, very liquid trading, has caught the interest of many traders. Before coming the internet age, previously only large corporations, hedge funds, large commodity trading advisors, and other institutional investors which can access this market and do forex trading. However, with the ascendancy of online/internet trading, many firms have opened up to the individual traders, providing leveraged trading as well as fully featured execution platforms, charts, and real time news.

What is traded on the foreign exchange market? The answer is simple: money. Forex trading is where the currency of one nation is traded for that of another. Therefore, forex trading is always traded in pairs. Te most commonly traded currency pairs are traded against the US Dollar (USD). The major currency pairs are the Euro Dollar (EUR/USD), the British Pound (GBP/USD), the Japanesse Yen (USD/JPY), and Swiss Franc (USD/CHF).

As mentioned before, because there is not a central exchange for the forex market, these pairs and their crosses are traded over the telephone, facsimile, and internet, through a global network of banks, multinational corporations, importers and exporters, brokers, institutional investors, as well as individual traders. Now, almost anyone with a computer and an internet connection can trade currencies just like the world’s largest banks do. There are now over 6 million trading accounts worldwide up from only 1.7 million in 1997.

Unlike the US currency futures markets, which have fixed daily trading hours, the forex market is a seamless, 24 hour market. At 2 p.m. ET each Sunday, trading begins as markets open for the week in Wellington, New Zealand, followed by Sydney and singapore. At 7 p.m. ET the Tokyo market opens, followed by London at 2 a.m. and New York at 8 a.m. This overlapping movement of currency trading among market centers allows traders to react to news immediately, and also provides the added flexibility of determining their trading schedules. If important news occurs while the US currency futures markets are closed, the next day’s opening could be a wild ride.

Many currency brokers (dealers) do not charge outright commision fees to individual traders. Instead, they profit from the bid-ask spread they set. As a result, many currency firms promote their low spreads rather than their low commission rates. Whether this is a good deal or not depends on the size of the spread in a given currency.

In addition to the market’s trading opportunities, foreign exchange can be a solid diversification component in your financial portfolio. Most diversification strategies involve a combination of sector allocation, foreign and domestic equities, and fixed income.

Some participants have branched out into precious metals and/or energy products; however, few traders consider expanding into forex. Why? The reason may be in the simple fact that in the US, investors tend to be underexposed to foreign exchange. Unfamiliarity typically breeds misconceptions, and foreign exchange in the US is no exception.

Nofie Iman
http://www.articlesbase.com/finance-articles/introduction-to-the-forex-trading-57756.html

Jules Dawson explains options trading

Duration : 7 min 25 sec

(more…)

Technorati Tags: optionstrading

The most Important Article on Day Trading for Beginners.
Telling it as it is!!!!!

Trading is not for everyone, you can lose lots of money trading and trading can make you lots of money, if you plan, study and work hard.

The appeal of day-trading and its overwhelming popularity of late stems from its easy accessibility, and promises of easy money.

Trading is a game of probabilities and at any given point in time a move may happen out of nowhere that was totally unforeseeable.

There are few jobs at which it is more difficult to make a living than trading!

Estimates are that 80% to 90% of all those who begin trading today will lose their trading capital within the next 12 months.

However, if you study diligently, read the works of “the masters,” plan your work and work your plan, you can make a decent living trading right from your desk at home. With your computer, that is.
Officially, “day-trading” is the act of trading during the daily market hours and closing all of your trades before the market closes each day.

To make a living at day-trading, you need the large daily point moves. This is referred to as volatility. Without volatility, a day-trader cannot make money.

You only need to make $100 per day starting with 1 lot. No need to overtrade or be greedy. As your account increases, add the number of lots.

Predicting where the market is going to go.

Not even the professional trader has an idea what is likely to happen to a particular trade, whether it will go in his favor or not. You will never be able to predict the market. So, your best bet is to follow the market, because you certainly aren’t going to lead it.

It is very risky for inexperienced futures traders who try to predict the market and speculate without having enough resources or experience.

Lack of understanding leads to rumours, false belief and wild stories.

New traders with PhDs and new traders lacking high school diplomas succeed and fail alike trading.
Once you realize that the market is not a thinking entity that has an evil streak that doesn’t want you to succeed, you can learn to trade “in the moment”.

The markets are always producing information. That information is always what “has” happened, not what “will” happen. The trader, on the other hand, will take this information and then arrive at some bias or belief as to what “may” happen, or what “should” happen, or “will” happen. No two traders are likely to come to the same exact conclusion although the market is providing them all the same information.

Over the years, system traders have worked out the most important things that bring trading success - it should not be surprising that they have achieved the success they have because it has taken them a great deal of time to learn how to trade well.

Learning from scratch by personal experience is very expensive in all walks of life and especially so in commodity trading. It is therefore surprising how many new traders choose this perilous alternative.

Your trump card in day-trading consists of two components: discipline and method. The most difficult practice for every trader is discipline.

Having “No Fear” to take the next and the next and the next trade no matter what. If you can master this single element, you will be ahead of 99% of all traders. Having the discipline to repeat your proven strategy, day after day, is the single most important facet of successful trading.

Above all, you need to be able to trust your system not to make a hash of things. You have to feel completely comfortable that your system will not make a hash of things.
If you have a simple method that will produce a steady, though small, profit regularly - and follow it religiously - you will be the trader who walks away consistently winning.

————————————————————————————————
About The Author:
Linda Wainman is author of the “Keeping It Simple Day Trading System”
Get the exciting details from http://day-online-trading.com
————————————————————————————————

NOTE: You have full permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the “About The Author” resource box. Thanks!

****************************************************************************************************

Linda Wainman
http://www.articlesbase.com/finance-articles/the-most-important-article-on-day-trading-for-beginners-64555.html

Swing Trading - Learn Now!
http://www.Reviews.bz/Swing

Swing Trading sits in the middle of the continuum between day trading and trend following. Swing traders hold a particular stock for a period of time.

Duration : 1 min 10 sec

(more…)

Technorati Tags: swing

Here we will outline three trading tools for bigger profits all futures traders can use.

These tools tend not to be used by many traders, but are heavily used by the savvy pro traders to enhance profit potential and you should consider them to in your futures trading.

Check them out for yourself and they will add a new dimension to your futures trading that could increase your trading profits to.

1. Gauging the pulse of the market

The “opening range technique is the ultimate filtering device for futures traders and is highly effective, as it allows traders to take the pulse of the market before entering it each day.

Say you have a buy signal from the previous days close, you can of course blindly buy the open, or you can use this filter.

Here is how it works:

1. Get the opening range and wait.
2. If prices are above the opening range go long with a market order
3. If they are not place a day order 3 ticks above the high of the opening range.

Here you are checking the pulse and strength of the market.

If prices move up your on board, if prices drop from the opening range you are kept out of a losing trade.

If your futures trading method is still telling you to be long, try again the next day. If your short of course, it’s the exact same in reverse.

Sounds simple? It is, but its very effective.

In our experience you can cut losing trades by up to 20% using this tool and it’s an excellent method for filtering your trading signals.

2. How to never a miss a big move

Richard Donchian’s four week rule outlined below may seem simple, but it is highly effective in catching big moves in futures trading.

We all know that most of the big moves each year in futures markets take place from market highs.

Most traders however want to buy dips to support and fail to get in on the big moves. This simple tool however will make sure you never miss a big move.

Here’s how it works.

Let’s assume you are looking at crude oil and spot a buying opportunity. Rather than buying a dip, wait for a new 4 week high and then take a long position.

You should only use this rule only in strong bull or bear markets, not ranging markets.

If you have a strong bull market, buy new four week highs and conversely, if you have a strong bear market sell new four week lows.

Its simple and a very effective tool try it out for yourself and see.

3. Intra commodity spreads

Again, another simple trading idea, which will give you risk reduction and staying power.

All you do is trade two different months in the same commodity

Your aim is to buy the month that is expected to increase most and sell another month to give you some risk protection.

Normally, the front month will move the most, so you buy it and sell a back month. This is known as a bull spread the reverse action in a bear market is a bear spread.

For example, the summer months are the strong ones in unleaded gasoline, so if your bullish buy them and sell a weaker back month as protection.

Spreading works particularly well in these futures markets:

Copper, energies, soybeans, wheat, coffee, sugar, cotton and all the meats expect bellies.

When using intra commodity spreads in futures trading, you need to take into account the general market trend and the strength of the spread. Spreading is great risk control vehicle and a way to get staying power an is a great tool for traders with small trading accounts.

All the above are simple tools, but don’t be deceived by their simplicity. If used correctly they can all enhance your futures trading and give you bigger profit potential.

Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/futures-trading-3-secret-tools-of-the-pro-traders-for-bigger-profits-65208.html

Discover why rest of the herd keeps trading without understanding the best way to profit from time frames in Forex trading.

Duration : 8 min 18 sec

(more…)

Technorati Tags: forex