How to make money from commodity? This is the question many people asking today. Many people assure others for earning a lot of money from Commodity. Those who trade in commodity also think about carry forwarding. Here no one can earn more from this with a single day. But always remember a good way to earn money.
Intraday advisories say buy/sell at particular levels but they can’t give long term calls. Everybody should know how the market is now and how volatile it is. And also know about life time high and low. Commodity products especially metals always move high and fall down. If a metal fall down, within a few months it will reach to its high position. A trader who have to wait for two or three months can earn a lot from this.
A few months before crude oil trade in range of 4500-4700. A trader can easily identify the low expected is 4300 and enter for a long term buy. Now crude oil trade in the range of 6200-6300.Those who trade in a single lot can also earn 2,00,000. And also in silver intraday traders gave calls for 200-400 points with truck load. If a call fails the trader will lose huge from the account. In June 2013 silver reach a low of 38500 and there is an easy way to enter short term buy. Within two days it gain 4000 points and reach 42500 and get a profit above 1,00,000.
Many beginners start trading as an intraday trader and buy or sell truck loads with small capital. Some time it will gave huge profit and some time leads to termination. Every have to understand the fact that no products can stand it’s high or low positions for a long time. While analyzing all the metals and energies in commodity they move twice in a year towards high and low positions(products such as Crude oil, Natural gas,Silver,Gold,Copper,Nickel,Lead,aluminum,Zinc).
Due to some news in April the gold and other metals fall down and Natural gas raise. Those who stay sell side in metals can get a profit in a few days that ever expected. And now buyers can also get a good profit. Don’t run behind the market. The sudden volatility created by data release and big companies are make trouble to intraday traders. Trading wisely with less quantity and good stop loss can earn more from commodity. Never say commodity trading is way to lose. It is a way to earn. Many beginners when they start trading in commodity always try to earn quickly by doing intraday trading leads to loss only because of false tips. Intraday traders are advised to go for a good advisory company and trade well.
Commodity is the generic term for any marketable item produced to satisfy wants or needs.
Trade is the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market.
Multi Commodity Exchange (MCX)
Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others).In 2012, MCX has taken the third spot among the global commodity bourses in terms of the number of futures contracts traded. Based on the latest data from Futures Industry Association (FIA), during the period between January and June this year, about 127.8 million futures contracts were traded on MCX.
Products in Commodity
DISCLAIMER: Please read our DISCLAIMER Before using this Blog. These are just few parameters of a commodity trading .In no circumstances it should be used or considered as an offer to sell or a solicitation of any offer to buy or sell the Commodities mentioned in it. If you select any of these stocks for your trades or investment, you do so at your own risk and we are not responsible for any loss or damage arising from your decision.