Commodity Trading Systems

Today many traders buy commodity trading systems and spent money on expensive software when really all they need is to do a bit of research on the net and build their own.

Here we will show you how to build your own commodity trading system that will help you pile up big gains, even if you have never traded before.

First things first!

Let’s look at the logic the commodity trading system is based on:

1. Catching the big long term trends and these only come a few times a year. These are the ones to focus on not short term moves or day trading, this system is geared for profit not low odds trades in short term market noise.

2. This commodity trading system does not predict, it only acts on confirmation of the tend.

3. The system is simple. Traders think that the more complicated a system the better it is likely to perform, the exact opposite is however true.

4. This system uses the same trading methodology for ALL markets and is based on a psychological flaw most traders have and lose.

5. As this system is based on long term trends it should take no more than 30 minutes a day and will work off the closing price ONLY.

Putting it together

This commodity trading system is technically based, so let’s look at what we Need the package to contain. All we want is weekly and daily charts and two basic indictors Bollinger bands and stochastics.

A good package on the web is available at futuresource.com, but there are many others, don’t buy one! You don’t need to.

Trading rules

Trading rules are simple:

1. Look for important valid (several tests over long time span) resistance and support on the weekly chart and note the trend, then look for the same pattern on the daily charts.

2. Once you have found a market that fits the above criteria look for breaks of support or resistance. Don’try and predict wait for the move to get underway i.e you have confirmation (via the stochastic indicator) this is when the odds of the trend continuing are highest.

3. Check the stochastic indicator supports the move this VERY important.

4. Enter with at the money or in the money. Do not buy out eh money options and remember keep time on your side.

5. Don’t move stops to soon, get stop in below breakout point and move immediately to entry if the position moves your way. Wait for larger profits and cover the position with covered write position.

That’s it; If you are not familiar with all the terms check our other articles.

Why will this commodity system work?

It’s based on sound logic, breakouts are easy to understand and trade, most traders wait for market pullbacks and miss the major moves. This system gets you in on ALL the major moves and confirms strength before buying, to get the odds on your side.

Keep this fact in mind Most major trends develop from market highs, that means you have to trade breakouts.

Most traders get stopped out by volatility, but this system assumes the trend will continue rather than reverse as it’s already in motion, so stops are kept wide. When the profit becomes big you can put in an insurance policy, in the form of a covered write option strategy.

Finally, options can be used but unlike the losing majority you won’t buy out the money options with little chance of success. You will keep time on your side and buy in at or near the money.

The other advantage of this system is it costs nothing and is easy to understand.

This means when you practice it, you will have confidence and be able to trade with Discipline, which is a key to trading success with a commodity trading system.

Don’t listen to traders who try and tell you trading commodity systems needs to be complicated, it does not. A simple commodity trading system like the above, traded with discipline is all you need.

Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/commodity-trading-systems-this-ones-free-and-makes-big-gains-65196.html

Penny Stock Trading Software

These guys are releasing the software that they use to generate their own stock picks!!

http://www.click-finance.info/doublingstocks.html

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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

Aidan McNamara on Traders Nation. Contrarian Ripple Trading - A Low-Risk Strategy to Profiting from Short-Term Trades

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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://InvestingDad.com - There's some mystery as to why people invest in options rather than stocks. This video shows a real example of how a 17% profit on a stock trade could have been a 117% profit in an options trade.

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Money makes the world go round. The basic necessities of life simply require items like foods, house fees, etc. People need to work hard to earn money, and there are a plethora of different ways one can earn a living. Of course, not all of these options are equivalent, some ways of gaining money are easier than others. Trading is famous around the world as it is one of the easiest ways to gain money. Trading is simply buying and selling. One can buy stocks and sell it in higher prices. Of course, if it were that easy, everyone would be doing it, right?

1. Find Sucess

There is a large difference between trading and trading with a significant profit margin. After all, it is possible for a company to sell ten million units of a particular item and still not make any profit. For you to gain more, you will need to use the trading procedure called Future Trading.

2. Future Trading

As one of the best used techniques in day trading, future day trading is a trading style that involves certain commodities and products what is sure to have higher demands in the future. These commodities are usually sugar, gold, oil, and so on and so forth. Future trading also involves an agreement that you will be purchasing an amount of commodities and products you will be using in your future trade on a certain time and price. This technique is advantageous because you are able to sell the products and commodities in the future where it sells in a high price. This will give you money, especially if you have purchased the products and commodities in a low price but you will be selling it in the future when people need it most. For example, todays reserves of oil are growing thin. By investing into oil, you can wait for the price of oil to skyrocket and then sell your oil hand over fist to make a huge profit.

3. Huge Losses

On the other side of the coin, it might cause you to lose a lot of money. Advents in technology might come about that cause oil to be completely outdated and worthless. Investing into strawberries might turn sour when you find out the crop has spoiled due to an unexpected hurricane or flood. Thus, always be extra careful and make sure that the commodity you invest into will be in extreme demand in the future.

4. Opportunities Abound

Day trading is a great option for a number of reasons. First of all, it has a considerably different amount of risk involved, say, compared with the stock market. This means that the payout is much greater also. Day trading is not generally for beginners.

http://www.daytradingrobot-review.com/daytradingrobot

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Forex broking is invariably an online business in the same manner as trading is much unlike the very early years. Different countries have norms that require forex brokers to register with some governmental agency to begin their broking business upon meeting certain educational and business qualification.

In the United States of America a forex trader must be registered with the Commodity Trading Commission as a Futures Commission Merchant. Futures Commission Merchant, FCM, can be an organization or an individual that accepts and handles futures orders on behalf of clients.

There are over 5000 forex broking institutions which include banks, financial institutions and certain other broking houses which all provide internet based trading facility. The forex brokers do not operate on the commission basis but on what is known as the spread in the community parlance. Spread means the difference amount between the buying and selling price of any currency.

A forex broker, like a stock broker advises the clients on different strategies of trading in foreign currencies along side giving out tips on the hot currencies based on technical analyses and fundamental researches aimed at maximizing the clients’ trading performances. The more seasoned and reputable forex broking houses offer to manage small investors’ trades to reduce exposure to risks with their extensive knowledge and years of experience, of course for an additional fee.

Usually forex brokers facilitate a practice account for no upfront fee payment so that a new trader can gain insights of the market and the features of such trading softwares. Retail investors may, in order that they evaluate different supports and software features, try out practice accounts with a few brokers before they open a final trading account.

Most of the forex broking houses, including the individual brokers, provide what is known as leveraged account facility. The leveraged account means if you paid a deposit amount of, say, US$100 you will get to trade upto an exposure of US$100,000. You may also try out a mini-account which lets you to open and operate forex trading for as low as US$100.

Forex brokers are classified as
1. Market Operators -Large banks, minimum lot size is $1,000,000
2. Small Brokers - Cater mainly to individual traders and settle deals with market makers.
3. Market Makers - Let small brokers and individuals trade with thereabouts of $50,000
4. Kitchens - Scrupulous operators who thrive on the belief that most of the clients lose money and that the revenue of kitchen is the clients’ losses.

Keep in mind, choosing forex brokers is to pay highest importance to your needs than theirs.

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