Welcome to Trading Made Easy Guide
Trading Futures Article
This is a selection made from among articles on Trading Futures. For a permanent link to this article, or to bookmark it for future reading, click here.
Commodity Trading Online
from:
When compared with other trading avenues, commodity trading presents infinite options, which a first-time trader might find valuable and easy to understand.
It is fast becoming the weapon of choice for a growing number of people who want to earn big money from their investments. This is because commodities represent an ever-expanding list of products that may be traded, from metals and petroleum, to agricultural goods, to consumer products and even to certain financial instruments and currencies.
And with the current advancements in technology it is no surprise that traders are also able to rade commodities online.
Experts say that first-timers should begin with a combination of around six to eight commodities during their initial attempts to ensure proper monitoring and to be on the safe side, as well. Commodity trading is usually tracked on a daily basis, so it's best that there are only a handful of eggs in your basket at the onset to get a feel of how the market works.
In fact, even the most expert traders opt to have just around 8 markets under their wing, because tracking too many markets that are moving at the same time eventually becomes a tedious task.
Online commodity trading is pretty much the same as the classic trading environment with the trading floor and the broker in that all the basic principles stand. The difference is just the venue. There is no key trick to managing commodities online, but you just have to be very careful where you click because it could spell your undoing.
You may want to start with corn market, because its highs and lows are often predictable and you don't have to worry too much about high margins. Wheat is also a good first choice because it moves much in the same way as corn. In the meat market, cattle is a workable jump-off point, though some experts urge against it because it often leads to a pretty wide range.
Products will large ranges include soybeans, cotton and sugar. In the past, sugar was considered a low-margin good because you don't really risk much when you get into it. However, current conditions in the market are not so favorable toward sugar and sugar-related goods anymore that it's best not to gamble too much into it.
You can also engage in commodity trading via an account that is held by your chosen executor, by way of a written power of attorney. If you choose to take this path, you have to make sure this person is somebody you can trust because he will be making major financial decisions for you.
If individual movement is not your type, you can share the load by joining commodity-related mutual funds and commodity pools, like limited partnerships. Or, you can take the more convenient route and going through online commodity trading exchanges and spare yourself from to get up from your seat.
Perhaps the best thing about commodities is the fact that these low-margin markets, when combined with investments in the likes of stocks or bonds, are able to offset risks in your overall portfolio.
As mentioned earlier, the principles of online commodity trading and traditional commodity trading are one and the same. You just probably have to be more careful with making hasty financial decisions when transacting online, because the convenience can sometimes be a trap and cause you be too lax in getting enough knowledge to make intelligent choices.
Trading Futures News
BEFORE THE BELL: US Stock Futures Down Before US GDP Data - Wall Street Journal
 Reuters | BEFORE THE BELL: US Stock Futures Down Before US GDP Data Wall Street Journal Crude-oil futures dropped 64 cents to $77.72 a barrel in electronic trading on the New York Mercantile Exchange. Gold futures were little changed at ... US futures decline before GDP report Wall Street Await GDP Data For Direction Caution prevails ahead of US GDP |
Crude Hanging Above $78 In Dull Trade - India Infoline.com
 The Hindu | Crude Hanging Above $78 In Dull Trade India Infoline.com MCX Crude oil futures are trading in red, though the losses have been moderate. The commodity has been floating above $78 but the undertone remains bearish ... OIL FUTURES: Nymex Crude Climbs, Helped By Weaker Dollar New Oil Pares Gain to Trade Unchanged at $76.99 a Barrel Oil Little Changed After Gains on Demand Outlook, Weaker Dollar |
Corn, Wheat, Soybeans Called to Open Higher as Demand Rises for U.S. Crops - Bloomberg
 The Money Times | Corn, Wheat, Soybeans Called to Open Higher as Demand Rises for U.S. Crops Bloomberg -- Corn futures are called to open 3 cents to 5 cents a bushel higher on the Chicago Board of Trade as hot, ... Afternoon Recap by Arlan Suderman Closing Grain Commentary 7/29/10 CBOT Corn Review: Futures Drift Lower; Weather Weighs On Prices |
U.S. Stock-Index Futures Decline Before Economic Growth Report - Bloomberg
U.S. Stock-Index Futures Decline Before Economic Growth Report Bloomberg Coinstar Inc., owner of the Redbox movie-rental kiosks, may follow its fall in after-hours trading yesterday after delayed access to some new releases ... Coinstar, MEMC, MetLife, Power-One, Thoratec May Move: US Equity Preview |
Gold Advances in New York as Slumping Dollar Spurs Demand for the Metal - Bloomberg
 IBTimes | Gold Advances in New York as Slumping Dollar Spurs Demand for the Metal Bloomberg ... a trader at FuturePath Trading LLC in Chicago. “The dollar's getting whacked, and that's helping gold.” Gold futures for December delivery rose $8.80, ... Futures Trading – Gold Higher And Crude Oil Lower – Commodities Chart Commodities Finish Session Higher; Gold, Crude Futures Gain Comex Gold Prices Steady-Firm Early as US Dollar Slumps |