Fundamental / Technical Analysis - What is commodity trading and is it profitable or not? in STRATEGIES & PLANS - I want to know about commodity trading...
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07-12-2018 11:51 AM
What is commodity trading and is it profitable or not?
I want to know about commodity trading
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07-12-2018 03:47 PM
Commodity trading is trading in future contracts of bullion, metals, energy and agri products. Option contracts were recently introduced as well. Being profitable or not, doesn't depend on what we trade, but on how we trade. Understand the reasons for price movements of the underlying asset, be it an equity share or a commodity. Then understand the resistance and support levels of the asset you are tracking. Learn about different trading strategies and identify the one that best suits your mindset. Then paper trade that strategy on the asset you are tracking. Once comfortable, start with real money but with least possible capital. Once you are profitable in a consistent manner, then deploy more capital. Also see advise/guidance from your professional advisor before you trade.
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07-12-2018 03:48 PM
Some people want to do commodity trading just because of the timings. Most people are salaried and can't track market during office hours. So late night closing of commodity market allows people who work during day time to trade.
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