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Showing posts with label Commodity. Show all posts
Showing posts with label Commodity. Show all posts

Wednesday, April 11, 2012

Currency and Commodity Trading techniques-Target gold and oil alternatives


An analysis of currencies and commodities trade the sharp dealer refers to the currencies of countries whose economic production and later export are mainly raw materials, such as raw materials such as aluminium, oil and gold and agricultural products such as sugar, soya or livestock.
Although it would not be wrong to refer to many world currency such as commodity currencies, this is not the intention when traders use this description. Those who follow currency and commodity trade trends, however, use the term to describe the three major countries in which raw materials an important role in both the economic output if the output play.
A look at trade charts will learn how changes in global commodity prices seem correlated to the Canadian, Australian and New Zealand dollar coins, with the Australian dollar, a very good proxy for gold price movements and the price of crude oil price seems to correlate closely with movements in the Canadian dollar (CAD). Unlike the other two commodity currencies, the New Zealand dollar (NZD) or "Kiwi" does not seem to be associated with a particular raw material, but rather shows a close correlation with price changes in the broader measure of Commodity Research Bureau (CRB) Index.
Let's consider what happens when gold strengthened? We can expect to observe a similar increase in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This equates to a strengthening of the Australian dollar against the US dollar, or put it another way, the u.s. dollar is weakening in that pair. The beginning of the economic uncertainty in the global economy, such as recession or soaring inflation, asks investors to gold as it is considered a safe haven. Currency and commodity traders will also how Golden links to the Aussie, and instead this pair trade.
Australia Gets a significant percentage of the export of raw materials and more than 50 percent of exports from this source with gold, other precious metals and copper play a major role. Take a look at trade data to see the strong positive correlation of the Aussie and gold. This means a switched-on trader can trade gold futures or an ETF, or exposure to AUD/USD in the spot forex market.
Market data will show the keen observer of currency and commodity trading the significant part played in the global commodities market by Canada, especially when it comes to her role as a strategic crude oil-producer. This leads to the inverse correlation observed between the changes in the price of crude oil and the movement of the pair USD/CAD (Loonie).
Canada is a major oil supplier to the United States, which in turn neighbour consumes more oil than any other economy. A low crude oil price would be bad news for the Canadian dollar, but positive for both the u.s. economy and the u.s. dollar. Every merchant bearish on the Outlook for crude oil prices as a proxy can go short the Canadian dollar in the Forex market, instead of short or inverse ETF in Nymex crude oil is going to buy.
Knowing how these three currencies are closely linked to raw materials, we can see why currency and commodity trading in spot forex trading takes observers their chance to take advantage of commodity market movements, or in crude oil, gold, or more in General about the commodity spectrum. There is always a bull market in currency trading, so decide what you are long or short in your chosen currency pair.

Friday, April 6, 2012

Currency and Commodity Trading techniques-Target gold and oil alternatives


An analysis of currencies and commodities trade the sharp dealer refers to the currencies of countries whose economic production and later export are mainly raw materials, such as raw materials such as aluminium, oil and gold and agricultural products such as sugar, soya or livestock.
Although it would not be wrong to refer to many world currency such as commodity currencies, this is not the intention when traders use this description. Those who follow currency and commodity trade trends, however, use the term to describe the three major countries in which raw materials an important role in both the economic output if the output play.
A look at trade charts will learn how changes in global commodity prices seem correlated to the Canadian, Australian and New Zealand dollar coins, with the Australian dollar, a very good proxy for gold price movements and the price of crude oil price seems to correlate closely with movements in the Canadian dollar (CAD). Unlike the other two commodity currencies, the New Zealand dollar (NZD) or "Kiwi" does not seem to be associated with a particular raw material, but rather shows a close correlation with price changes in the broader measure of Commodity Research Bureau (CRB) Index.
Let's consider what happens when gold strengthened? We can expect to observe a similar increase in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This equates to a strengthening of the Australian dollar against the US dollar, or put it another way, the u.s. dollar is weakening in that pair. The beginning of the economic uncertainty in the global economy, such as recession or soaring inflation, asks investors to gold as it is considered a safe haven. Currency and commodity traders will also how Golden links to the Aussie, and instead this pair trade.
Australia Gets a significant percentage of the export of raw materials and more than 50 percent of exports from this source with gold, other precious metals and copper play a major role. Take a look at trade data to see the strong positive correlation of the Aussie and gold. This means a switched-on trader can trade gold futures or an ETF, or exposure to AUD/USD in the spot forex market.
Market data will show the keen observer of currency and commodity trading the significant part played in the global commodities market by Canada, especially when it comes to her role as a strategic crude oil-producer. This leads to the inverse correlation observed between the changes in the price of crude oil and the movement of the pair USD/CAD (Loonie).
Canada is a major oil supplier to the United States, which in turn neighbour consumes more oil than any other economy. A low crude oil price would be bad news for the Canadian dollar, but positive for both the u.s. economy and the u.s. dollar. Every merchant bearish on the Outlook for crude oil prices as a proxy can go short the Canadian dollar in the Forex market, instead of short or inverse ETF in Nymex crude oil is going to buy.
Knowing how these three currencies are closely linked to raw materials, we can see why currency and commodity trading in spot forex trading takes observers their chance to take advantage of commodity market movements, or in crude oil, gold, or more in General about the commodity spectrum. There is always a bull market in currency trading, so decide what you are long or short in your chosen currency pair.

Begin to learn trade commodities, Commodity trading courses in your area search


Your decision to start learning to trade commodities you get a completely new insight into the world of commodity futures trading. This can occur in a specific sector such as grains or precious metals or maybe across the whole spectrum of global commodity markets. Now doubt that you've heard concerns about energy security and the crude oil trading on the New York Mercantile Exchange, and of how to price fluctuations can be caused by a range of factors. And what causes price movements in gold, silver and other precious metals and why should cocoa or coffee futures prices suddenly surge?
These are exciting to study markets, so finding a top quality raw materials training provider is so important. How do you go about learning to trade commodities? What are the main areas that you should feel comfortable with confidence, so you control the global commodity markets? Firstly, if you learn to trade commodities to find where do the commodity trading courses can be offered. Either start your commodity education at home using materials with an online training package or attend a top quality school where students study all aspects of commodities and futures trading.
What are the benefits of attending a commodity trading school? There is face to face contact with teachers and opportunities for one-on-one coaching. The coaches or their knowledge of the courses they may have or might have to trade the commodity markets and so have real live trading experience, that is a valuable asset to have in a coach. When you learn to trade of raw materials in a classroom that you can, share ideas with like-minded colleagues networks with colleagues.
Learning on location can watch and learn from "live" store with your coaches, who can trade in real time if you look over their shoulder. This is valuable because it helps to explain in a live environment what you may have learned elsewhere in theory. Such examples are valuable if they have a real, sharp edge to your commodity trading, education and the teachers will help you create a personalized commodity trading plan. With the growth in trade centres, training institutions now have locations worldwide and you can find one close to you, such as in London, Singapore, Dubai and Toronto, as well as large us centers such as Washington, Philadelphia, Chicago and New York.
What are the benefits of online commodity trading packages? Sometimes it's impossible to make your location or obligations to attend a physical location. So why not try an online training package with technical and fundamental aspects of the commodity trade, which offer more flexibility with your work schedule.
This online commodity trading courses offer e mail contact will have with your tutors, as well as video tutorials, using charts, blogs and forums. You've probably also access to special software packages, allowing you to practice trades and use different sales techniques, as well as CDs and DVDs that relate to the key learning points.
What threatens to be covered when you start learning to trade of commodities? Expect to look at the effects of supply and demand on the commodity prices in fundamental analysis, that the consequences of wars, inflation and the economic cycle eight. Technical analysis is also important and includes understanding indicators on the charts of the raw materials, such as support and resistance, Fibonacci, moving averages, Japanese Candlesticks and volumes of trade, which act as signals for when to close and enter a trade.
The course is probably to show you what a commodity futures contract is and how easy it is to trade electronically, how you place your order, as well as your futures and commodity futures margin setting to understand how hedging in commodities trade work. The whole area of risk management and the preservation of capital is also an important aspect of learning, such as the psychology of trading and with a commodity trading plan. All these fundamental areas shall be reimbursed when you start learning to trade of raw materials.

Wednesday, December 14, 2011

Commodity Futures Trading And Forex Trading - How Fortunes Are Made Today!


Many people are hooked to forex trading after the crash of the stock market in 2008. Infact in the last decade, many people become millionaires trading forex. It is being said that in this decade forex trading will create many more millionaires. Traders and investors are turning towards forex in droves. The opening of the retail forex market has been the most revolutionary development of the last decade.

Now, any small investor can start trading forex by opening a forex trading account with as little as $250. Retail forex market is experiencing unprecedented growth. This growth in the retail forex market is infact explosive. It is expected that this explosive growth in the retail forex market will continue in this decade. Spot forex trading is the name of the game.

But have you ever thought of Commodity Futures Trading? The money making potential of forex trading and commodity futures trading is staggering. Many fortunes have been made in the last few decades by ordinary traders trading these markets. Let me quote a few examples:

1. Bruce Kovner-He was a former NYC Taxi Cab driver who turned his $3,000 into $11 Billion in a few decades when he started trading forex and futures in 1977.

2. John Henry turned $16,000 into $1.3 Billion trading commodity futures. Now, he owns the Boston Red Sox, Fenway Part etc.

3. Ed Seykota turned his $5,000 into $15 Million in just under 12 years.

4. Richard Dennis is one of the trading legends who started with only $400 and turned that into $200 Million in the next decade.

Whatever, there are many more examples that can be quoted of ordinary people turning into millionaires and even billionaires trading forex and commodity futures.

Now, the futures market is a highly regulated market unlike the spot forex market that is unregulated and uncentralized. Futures trading is done through a Central Clearing House that makes it a regulated market with a better price discovery and better trade executions as compared to the spot forex market. You can trade many futures contracts that includes forex futures, commodity futures and a host of other contracts. You can trade dozens of commodity futures contracts that includes the agriculture commodity futures.

Right now, the gold market is in a bullish mood. Gold prices are hovering around $1,200 per ounce. It is being said that within the next year, gold prices can go as high as $2,500 per ounce. The same thing is happening to the silver market. Silver has six times more potential to skyrocket as compared to gold. Agriculture commodities like soybean, coffee, corn, cotton etc are in hot demand all over the world.

It is being said that the commodity market will be in a boom for many decades in the first part of the 21st century. This boom will be fueled by the rising population all over the world that would naturally yearn for these commodities to satisfy their demand for a better living.As the supply of these commodities is limited, the world will experience unprecedented commodity prices in the near future. Think about the oil prices reaching as high as $200 per barrel in the next few years.

Oil is one of the most heavily traded commodities in the world. Now, you can spot trade oil and gold from the same forex broker platform. Whatever, if you know spot forex trading, you can easily master commodity futures market. The basics are the same. There might be some difference in the details but the same technical indicators work in both the markets and the same theory behind price action works in both the markets.

Combining forex with commodity futures trading can make you a fortune in this decade. This is you chance to make your fortune now just like RIchard Dennis. Remember, he was also once upon a time a small time trader who had started with only $400. Don't hesitate, you chance to make a fortune is standing in front of you!



Tuesday, November 1, 2011

Learning Search close to the course, start trading commodity trade goods


To start learning to trade items your decision gives a completely new insights throughout the world of the commodity futures trading. It is across the entire spectrum of precious metals, such as cereals and global commodity markets in a particular sector. You may have heard concerns about how now occur in the entire range of the price fluctuation of doubt, energy security and oil trade New York Mercantile Exchange. Price movement, gold, silver, other precious metals, cocoa, why should something that caused the surge suddenly Coffee futures prices.
Training providers find the best quality products are very important, because these to research market is exciting. Go to learn how trade items? Feel comfortable entry into the world commodity markets have confidence to something and need to master important areas. The course to provide the product first, if you are a trade do trade goods. Your VA education using start online training package material study at home or at school products for students and future all aspects to cover trading best quality attend.
What's the benefits of commodity trading school to attend? Face is the contact teacher and one to one coaching opportunity. A valuable asset, coach or they probably trade commodity markets and because coach has one or more courses from their knowledge in real trading experience. When learning the trade of the products in the classroom-oriented colleagues can network colleagues and sharing ideas.
Place of learning and, seeing the "live" trading shoulder could trade in real time from coach can learn. It's live help settings description has learned what other theories in to help. Is a valuable education as an example of this, trading, products in fact, bring any sharp edges trading plans for tutoring, individual products created to help you. Trading centers of growth, now global training provider of where there might be close to finding one, such as Toronto, Dubai, London, Singapore, as well as major, such as our Center, Washington, Philadelphia, Chicago, New York.
What the benefits of trading online commodity package? Impossible sometimes to attend in your place or promise, its physical location. So why offer flexibility in scheduling your job merchandising techniques and basic aspects should try the online training package.
Trading course these online products to provide an email contact is just as teachers use video tutorials, charts, blog and Forum. Need access to special software trading different trading techniques, as well as covering learning objectives of the Cd or Dvd can be practiced most you too.
Is likely to cover what is to start learning to trade items? Expect the effect of supply and demand to see fundamental analysis considering the effect of commodity price war, inflation and economic cycle. Technical analysis is also important in understanding indicator moving average, and for entering the trade ends, and the Japan language candlestick of commodity trade volume resistance, Fibonacci, support graphs are included as signal.
E-trade understanding course any commodity futures and how easily how the margins of futures orders, commodity futures set and is more likely to show that how to hedge commodity works deal in. Psychology of trading, trading plan, merchandise is an important aspect of learning also preservation of capital risk management of the entire region. Explained the basic areas of all of these to start learning the trade.

Review the trading product alternative to currencies and techniques - target gold and oil.


Mainly products oil, including ingredients such as aluminum and later export analysis hard currency and Commodities traders of national currency in economic output and reference, and is gold such as sugar, soybeans, livestock and agricultural products.
It refers to many world currency trading currency as a mistake is not intended to use this explanation of traders. Use the term currency and commodity trading trends, however, play a big role to both the output of the commodity economy and exports to describe three major countries.
Trading chart to see how global commodity price changes correlated dollar currencies of Canada, Australia and New Zealand to shows and Australia dollar gold price movements for a very good proxy and oil prices as closely associates the movements of the Canadian dollar (CAD). Two other commodity currencies and unlike New Zealand dollar (NZD) or "Kiwi" specific is not linked to the product rather broad measure of commodity Research Bureau (CRB) index of price change in close correlation shows.
Enhanced look at acting as a money? Will observe the rise like every currency pair trade AUD / USD pair (Australia). This is equivalent to the Australia dollar and US dollar strengthening, or to put it another way is in pairs weakened the dollar. Investors appears to go gold as the onset of the uncertainty of the economy such as the world economic recession or inflation rise is regarded as a safe haven. Currency and commodity traders also Australia how to link money to see and trade on behalf of this pair.
Australia products from a significant percentage of the output and more than 50% of the original of the export of gold, other precious metals, copper big serves. Australia gold strongly positive correlation to reference data business look at to let. In other words, agile trader gold futures or ETFs trading or AUD / get exposure to the US dollar, spot forex market.
Market data is as crude oil producers, especially strategic role, when sharp observer, currency and commodity trading, Canada an important part of the world commodity market play appears. This movement of the USD / CAD (die) paired with the crude oil price changes observed inverse relationships.
Canada is a major oil supplier is the United States to its neighbours in order to consume more oil than the other economies. Low oil prices, bad news, the Canadian dollar is positive United States economy and both of US dollar? As a proxy rather than short short Canadian dollars on the Nymex crude oil or inverse ETF for oil purchases was about the prospect of the bearish oil prices all traders in the Forex market.
To know these three currencies and how closely commodity linked trading commodity currencies and observer of chance from the movement of spot forex trading commodity markets, crude oil why, whether money or more broadly, take the interests of the entire spectrum of products that can be seen. Always bullish market currency trading, long or short, the selected currency pair decides to do something

Friday, October 21, 2011

Commodity Futures Trading


Commodity trading involves the exchange of primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The products are uniform; one of its quantity or fraction serves the same purpose as any other. Considering the following cases - a barrel of oil, an ounce of gold, and a bushel of wheat - one is pretty much like another. The most extensively traded and most liquid commodities are Oil and Gold.

There are some differences also. This difference is owing to shipping costs, differences in composition, etc. For example, some oil does sell for a diverse price than that from another source. Commodities are usually traded in the form of futures. It can be also traded on spot markets, where the trading is happened immediately in exchange for cash or some other good.

Commodity futures trading, also known as commodity options trading, creates a contract to sell or buy the goods for a fixed price by a certain date in the future. This contract period is the major reason of the huge potential for profit and loss. Future trading also involves all the exciting aspects of trading, as it intrinsically occupies predictions of the future and consequently uncertainty and risk.

The commodity futures trading puts some obligations on the buyers and sellers. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Commodity Futures Trading


Commodity trading involves the exchange of primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The products are uniform; one of its quantity or fraction serves the same purpose as any other. Considering the following cases - a barrel of oil, an ounce of gold, and a bushel of wheat - one is pretty much like another. The most extensively traded and most liquid commodities are Oil and Gold.

There are some differences also. This difference is owing to shipping costs, differences in composition, etc. For example, some oil does sell for a diverse price than that from another source. Commodities are usually traded in the form of futures. It can be also traded on spot markets, where the trading is happened immediately in exchange for cash or some other good.

Commodity futures trading, also known as commodity options trading, creates a contract to sell or buy the goods for a fixed price by a certain date in the future. This contract period is the major reason of the huge potential for profit and loss. Future trading also involves all the exciting aspects of trading, as it intrinsically occupies predictions of the future and consequently uncertainty and risk.

The commodity futures trading puts some obligations on the buyers and sellers. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Commodity Futures Trading


Commodity trading involves the exchange of primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The products are uniform; one of its quantity or fraction serves the same purpose as any other. Considering the following cases - a barrel of oil, an ounce of gold, and a bushel of wheat - one is pretty much like another. The most extensively traded and most liquid commodities are Oil and Gold.

There are some differences also. This difference is owing to shipping costs, differences in composition, etc. For example, some oil does sell for a diverse price than that from another source. Commodities are usually traded in the form of futures. It can be also traded on spot markets, where the trading is happened immediately in exchange for cash or some other good.

Commodity futures trading, also known as commodity options trading, creates a contract to sell or buy the goods for a fixed price by a certain date in the future. This contract period is the major reason of the huge potential for profit and loss. Future trading also involves all the exciting aspects of trading, as it intrinsically occupies predictions of the future and consequently uncertainty and risk.

The commodity futures trading puts some obligations on the buyers and sellers. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Trading and Investing in Commodity Market


Commodity market is a place where transaction of business occurs between all kinds of commodities. Initially only agriculture commodities were traded in the commodity market. But with the advancement of technology and industrialization, globalization commodities have crossed the barriers and now it allows all kinds of commodities traded. The gradual evolution of commodity market in India has been of great significance for the country's economic prosperity.

Indian commodity market includes two big benchmarks

Multi Commodity Exchange and

National Commodity and Derivative Exchange. MCX ie Multi Commodity Exchange includes bullion, metals and energy commodities. NCDEX ie National Commodity and Derivative Exchange with allows investors to trade in agriculture commodities. Multi Commodity Exchange of India Limited in Mumbai, is also an independent exchange recognized by the Government of India. National Commodity & Derivatives Exchange Limited located in Mumbai is a public limited company.

Commodity trading is done on certain principles: First is that trading must be done on standard products only. Second principle is that commodity trading takes place through future contracts. Like any other investment commodity trading do involves risk. The chance to limit that risk comes with experience and knowledge of the various markets.

Some suggestions to trade in commodity market that a trader must follow are:


Define certain strict limits to define your damage.
To start trading wait for the appropriate time.
Dont change your way of reaction toward trading as we can see that markets trade in a same direction for a long duration of time.
Last but not the least select a qualified consultant from a good advisory and follow his advice for trading. Judge them on the basis of their reputation and the accuracy the provide on their tips.
And also do not change your advisor on a slightest damage as the stock market is a highly volatile place and your advisor or consultant are the only one's who can help you in the worse condition.

As compared to other markets in the last ten years, commodity market has performed relatively better than other markets like bonds, equity or currency. However, the participation in future trading in Indian commodity market is very low as compared to other countries. Commodity trading includes: gold, silver, lead, nickel, zinc, aluminium, copper, crude oil, natural gas, menthol, soybean, guar seed, turmeric, cumin seed, palm sugar, gram, mustard seed and more.

It is advised to get commodity trading tips and commodity trading news from some stock advisory firm which provides accurate tips. They have data about the market which is based on research by using various technical tools & experience.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How Does Commodity Futures Day Trading Work?


What is commodity futures day-trading? Day-trading strategies are unique mechanical methods for entering a liquid commodity market early in the trading day and exiting some time later in the same day for a profit. Keith Fitschen has developed a family of day-trading strategies for the commodity markets that use the same basic market principle to gain systematic profits. The basic methodology uses multiple timeframe analysis to determine the likely trend for each market early in the trading day. When the likely trend is determined, entry is made in the direction of the trend. Trade exit is made in one of three ways: a stop loss point is hit (and the trade is a loss), a profit target point is hit (and the trade is a windfall profit), or the exit is made at the end of the trading day, usually for a profit.

Keith Fitschen's commodity futures day-trading methods are used in the most liquid commodities in each group: for the grains, wheat and soybeans can be traded; for the softs, coffee can be traded; for the currencies, the yen and euro-currency can be traded; for the metals, copper, gold, and silver can be traded; for the energies, crude oil, heating oil, and reformulated gas can be traded; for the financials, 10-year notes can be traded;, and for the stock indices, the S&P 500, the Russell 2000, and the German DAX can be traded.

Traditionally, the problem with futures day-trading strategies has been transaction costs: slippage and commission. These costs severely ate into the profit that could be made on a day-trade. But with the advent of deep discount brokers, and electronic trading, commission for a trade can be less than $10, and slippage for a trade can be as low as one or two ticks. This evolution has caused a number of successful trading system designers to promote day-trading strategies. Keith Fitschen's strategies are unique because they use the same market approach across all the groups, and because the strategy "works" on all the liquid commodities. This type of day-trading leads to an average profit-per-trade of about $150 across all the commodities, and a winning percentage of about 55 percent.

Normally, successful day-trading strategies have been sold to the public for $3,000, or more. This high bar to entry reduces the funds available for trading for a typical trader. Keith Fitschen's day-trading strategies are offered for a monthly lease fee. This allows a trader to avoid the large upfront expense and spread it over a long period of time, while retaining the right to stop at any time. This means of gaining access to the trading signals is certainly an advantage over the traditional approach.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How Does Commodity Futures Day Trading Work?


What is commodity futures day-trading? Day-trading strategies are unique mechanical methods for entering a liquid commodity market early in the trading day and exiting some time later in the same day for a profit. Keith Fitschen has developed a family of day-trading strategies for the commodity markets that use the same basic market principle to gain systematic profits. The basic methodology uses multiple timeframe analysis to determine the likely trend for each market early in the trading day. When the likely trend is determined, entry is made in the direction of the trend. Trade exit is made in one of three ways: a stop loss point is hit (and the trade is a loss), a profit target point is hit (and the trade is a windfall profit), or the exit is made at the end of the trading day, usually for a profit.

Keith Fitschen's commodity futures day-trading methods are used in the most liquid commodities in each group: for the grains, wheat and soybeans can be traded; for the softs, coffee can be traded; for the currencies, the yen and euro-currency can be traded; for the metals, copper, gold, and silver can be traded; for the energies, crude oil, heating oil, and reformulated gas can be traded; for the financials, 10-year notes can be traded;, and for the stock indices, the S&P 500, the Russell 2000, and the German DAX can be traded.

Traditionally, the problem with futures day-trading strategies has been transaction costs: slippage and commission. These costs severely ate into the profit that could be made on a day-trade. But with the advent of deep discount brokers, and electronic trading, commission for a trade can be less than $10, and slippage for a trade can be as low as one or two ticks. This evolution has caused a number of successful trading system designers to promote day-trading strategies. Keith Fitschen's strategies are unique because they use the same market approach across all the groups, and because the strategy "works" on all the liquid commodities. This type of day-trading leads to an average profit-per-trade of about $150 across all the commodities, and a winning percentage of about 55 percent.

Normally, successful day-trading strategies have been sold to the public for $3,000, or more. This high bar to entry reduces the funds available for trading for a typical trader. Keith Fitschen's day-trading strategies are offered for a monthly lease fee. This allows a trader to avoid the large upfront expense and spread it over a long period of time, while retaining the right to stop at any time. This means of gaining access to the trading signals is certainly an advantage over the traditional approach.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How Does Commodity Futures Day Trading Work?


What is commodity futures day-trading? Day-trading strategies are unique mechanical methods for entering a liquid commodity market early in the trading day and exiting some time later in the same day for a profit. Keith Fitschen has developed a family of day-trading strategies for the commodity markets that use the same basic market principle to gain systematic profits. The basic methodology uses multiple timeframe analysis to determine the likely trend for each market early in the trading day. When the likely trend is determined, entry is made in the direction of the trend. Trade exit is made in one of three ways: a stop loss point is hit (and the trade is a loss), a profit target point is hit (and the trade is a windfall profit), or the exit is made at the end of the trading day, usually for a profit.

Keith Fitschen's commodity futures day-trading methods are used in the most liquid commodities in each group: for the grains, wheat and soybeans can be traded; for the softs, coffee can be traded; for the currencies, the yen and euro-currency can be traded; for the metals, copper, gold, and silver can be traded; for the energies, crude oil, heating oil, and reformulated gas can be traded; for the financials, 10-year notes can be traded;, and for the stock indices, the S&P 500, the Russell 2000, and the German DAX can be traded.

Traditionally, the problem with futures day-trading strategies has been transaction costs: slippage and commission. These costs severely ate into the profit that could be made on a day-trade. But with the advent of deep discount brokers, and electronic trading, commission for a trade can be less than $10, and slippage for a trade can be as low as one or two ticks. This evolution has caused a number of successful trading system designers to promote day-trading strategies. Keith Fitschen's strategies are unique because they use the same market approach across all the groups, and because the strategy "works" on all the liquid commodities. This type of day-trading leads to an average profit-per-trade of about $150 across all the commodities, and a winning percentage of about 55 percent.

Normally, successful day-trading strategies have been sold to the public for $3,000, or more. This high bar to entry reduces the funds available for trading for a typical trader. Keith Fitschen's day-trading strategies are offered for a monthly lease fee. This allows a trader to avoid the large upfront expense and spread it over a long period of time, while retaining the right to stop at any time. This means of gaining access to the trading signals is certainly an advantage over the traditional approach.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Commodity Futures Trading


Commodity trading involves the exchange of primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The products are uniform; one of its quantity or fraction serves the same purpose as any other. Considering the following cases - a barrel of oil, an ounce of gold, and a bushel of wheat - one is pretty much like another. The most extensively traded and most liquid commodities are Oil and Gold.

There are some differences also. This difference is owing to shipping costs, differences in composition, etc. For example, some oil does sell for a diverse price than that from another source. Commodities are usually traded in the form of futures. It can be also traded on spot markets, where the trading is happened immediately in exchange for cash or some other good.

Commodity futures trading, also known as commodity options trading, creates a contract to sell or buy the goods for a fixed price by a certain date in the future. This contract period is the major reason of the huge potential for profit and loss. Future trading also involves all the exciting aspects of trading, as it intrinsically occupies predictions of the future and consequently uncertainty and risk.

The commodity futures trading puts some obligations on the buyers and sellers. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers.




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Thursday, October 20, 2011


If we carefully look at the present business scenario then we could easily see that in recent time futures trading are gaining its world-wide popularity. In fact it is the most common trading found on many markets these days. As per the latest definitions- it is more like a trading of contracts called futures contracts, which facilitates the owner with power to trade the basic commodity at somewhere in the future for a fixed rate. Moreover, like stocks and options trading, futures trades are done in precise centralized futures commodity trading markets. However, depending upon the type of futures contracts, it can be broadly classified as commodity futures contracts and financial futures contracts.
In commodity futures contracts, trading of contracts end with a physical delivery. They may include agricultural commodity futures like sugar, oats, wheat, rice etc OR energy commodity futures such as crude oil, natural gas, etc; metals & stones like gold, silver, diamond etc. This means that if a trader is holding a futures contract and the time come when it expires, the appropriate payment will be made by the buyer, and the basic commodity (agricultural or energy) will be delivered by the seller. Whereas in financial futures contracts, trading of contracts end with a cash settlement and it include futures for treasury notes, bonds, mutual funds etc.
The futures contract trading can be executed electronically on electronic trading platforms linked to the major commodity exchanges or by the traditional open outcry method on the floor of the exchange. However, the basic form of futures contract is that it must state a location and date for physical delivery of the particular commodity. There are times when delivery arrangements are also specified by the exchange. This is particularly important for commodities that require high transportation costs, which in turn may affect the delivery place.
All those who are involved in commodity future trading must understand that for most commodity futures contracts, daily price movement limits are specified by the exchange. A limit movement is nothing but a move of price that can shift in either direction equal to the daily price limit. If the price moves down by an amount equal to the daily price limit, the contract is said to be limit down. And if the price moves up by the limit then it is said to be limit up. Price limits and positions limits generally aim to avoid large price movements deriving from excessive speculation. However, at times they act as an artificial barrier to trading when the price of the underlying commodity increases or decreases swiftly.
Overall, trading with commodity futures is definitely a good way to make handsome money but there are some essential factors that one has to take care. It is highly volatile in nature and more likely to remain unpredictable mainly because of several factors like geopolitical concerns, contracted demand-supply fundamentals, growth and inflation pressures that put pressure on the global commodity market. It is a most interesting market environment but also a dangerous one as many wars have been fought and many nations & leading companies compete for scarce natural resources and food supplies

Understanding the Fundamentals of Commodity Futures Trading


If we carefully look at the present business scenario then we could easily see that in recent time futures trading are gaining its world-wide popularity. In fact it is the most common trading found on many markets these days. As per the latest definitions- it is more like a trading of contracts called futures contracts, which facilitates the owner with power to trade the basic commodity at somewhere in the future for a fixed rate. Moreover, like stocks and options trading, futures trades are done in precise centralized futures commodity trading markets. However, depending upon the type of futures contracts, it can be broadly classified as commodity futures contracts and financial futures contracts.

In commodity futures contracts, trading of contracts end with a physical delivery. They may include agricultural commodity futures like sugar, oats, wheat, rice etc OR energy commodity futures such as crude oil, natural gas, etc; metals & stones like gold, silver, diamond etc. This means that if a trader is holding a futures contract and the time come when it expires, the appropriate payment will be made by the buyer, and the basic commodity (agricultural or energy) will be delivered by the seller. Whereas in financial futures contracts, trading of contracts end with a cash settlement and it include futures for treasury notes, bonds, mutual funds etc.

The futures contract trading can be executed electronically on electronic trading platforms linked to the major commodity exchanges or by the traditional open outcry method on the floor of the exchange. However, the basic form of futures contract is that it must state a location and date for physical delivery of the particular commodity. There are times when delivery arrangements are also specified by the exchange. This is particularly important for commodities that require high transportation costs, which in turn may affect the delivery place.

All those who are involved in commodity future trading must understand that for most commodity futures contracts, daily price movement limits are specified by the exchange. A limit movement is nothing but a move of price that can shift in either direction equal to the daily price limit. If the price moves down by an amount equal to the daily price limit, the contract is said to be limit down. And if the price moves up by the limit then it is said to be limit up. Price limits and positions limits generally aim to avoid large price movements deriving from excessive speculation. However, at times they act as an artificial barrier to trading when the price of the underlying commodity increases or decreases swiftly. 

Overall, trading with commodity futures is definitely a good way to make handsome money but there are some essential factors that one has to take care. It is highly volatile in nature and more likely to remain unpredictable mainly because of several factors like geopolitical concerns, contracted demand-supply fundamentals, growth and inflation pressures that put pressure on the global commodity market. It is a most interesting market environment but also a dangerous one as many wars have been fought and many nations & leading companies compete for scarce natural resources and food supplies.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Understanding the Fundamentals of Commodity Futures Trading


If we carefully look at the present business scenario then we could easily see that in recent time futures trading are gaining its world-wide popularity. In fact it is the most common trading found on many markets these days. As per the latest definitions- it is more like a trading of contracts called futures contracts, which facilitates the owner with power to trade the basic commodity at somewhere in the future for a fixed rate. Moreover, like stocks and options trading, futures trades are done in precise centralized futures commodity trading markets. However, depending upon the type of futures contracts, it can be broadly classified as commodity futures contracts and financial futures contracts.

In commodity futures contracts, trading of contracts end with a physical delivery. They may include agricultural commodity futures like sugar, oats, wheat, rice etc OR energy commodity futures such as crude oil, natural gas, etc; metals & stones like gold, silver, diamond etc. This means that if a trader is holding a futures contract and the time come when it expires, the appropriate payment will be made by the buyer, and the basic commodity (agricultural or energy) will be delivered by the seller. Whereas in financial futures contracts, trading of contracts end with a cash settlement and it include futures for treasury notes, bonds, mutual funds etc.

The futures contract trading can be executed electronically on electronic trading platforms linked to the major commodity exchanges or by the traditional open outcry method on the floor of the exchange. However, the basic form of futures contract is that it must state a location and date for physical delivery of the particular commodity. There are times when delivery arrangements are also specified by the exchange. This is particularly important for commodities that require high transportation costs, which in turn may affect the delivery place.

All those who are involved in commodity future trading must understand that for most commodity futures contracts, daily price movement limits are specified by the exchange. A limit movement is nothing but a move of price that can shift in either direction equal to the daily price limit. If the price moves down by an amount equal to the daily price limit, the contract is said to be limit down. And if the price moves up by the limit then it is said to be limit up. Price limits and positions limits generally aim to avoid large price movements deriving from excessive speculation. However, at times they act as an artificial barrier to trading when the price of the underlying commodity increases or decreases swiftly. 

Overall, trading with commodity futures is definitely a good way to make handsome money but there are some essential factors that one has to take care. It is highly volatile in nature and more likely to remain unpredictable mainly because of several factors like geopolitical concerns, contracted demand-supply fundamentals, growth and inflation pressures that put pressure on the global commodity market. It is a most interesting market environment but also a dangerous one as many wars have been fought and many nations & leading companies compete for scarce natural resources and food supplies.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Understanding the Fundamentals of Commodity Futures Trading


If we carefully look at the present business scenario then we could easily see that in recent time futures trading are gaining its world-wide popularity. In fact it is the most common trading found on many markets these days. As per the latest definitions- it is more like a trading of contracts called futures contracts, which facilitates the owner with power to trade the basic commodity at somewhere in the future for a fixed rate. Moreover, like stocks and options trading, futures trades are done in precise centralized futures commodity trading markets. However, depending upon the type of futures contracts, it can be broadly classified as commodity futures contracts and financial futures contracts.

In commodity futures contracts, trading of contracts end with a physical delivery. They may include agricultural commodity futures like sugar, oats, wheat, rice etc OR energy commodity futures such as crude oil, natural gas, etc; metals & stones like gold, silver, diamond etc. This means that if a trader is holding a futures contract and the time come when it expires, the appropriate payment will be made by the buyer, and the basic commodity (agricultural or energy) will be delivered by the seller. Whereas in financial futures contracts, trading of contracts end with a cash settlement and it include futures for treasury notes, bonds, mutual funds etc.

The futures contract trading can be executed electronically on electronic trading platforms linked to the major commodity exchanges or by the traditional open outcry method on the floor of the exchange. However, the basic form of futures contract is that it must state a location and date for physical delivery of the particular commodity. There are times when delivery arrangements are also specified by the exchange. This is particularly important for commodities that require high transportation costs, which in turn may affect the delivery place.

All those who are involved in commodity future trading must understand that for most commodity futures contracts, daily price movement limits are specified by the exchange. A limit movement is nothing but a move of price that can shift in either direction equal to the daily price limit. If the price moves down by an amount equal to the daily price limit, the contract is said to be limit down. And if the price moves up by the limit then it is said to be limit up. Price limits and positions limits generally aim to avoid large price movements deriving from excessive speculation. However, at times they act as an artificial barrier to trading when the price of the underlying commodity increases or decreases swiftly. 

Overall, trading with commodity futures is definitely a good way to make handsome money but there are some essential factors that one has to take care. It is highly volatile in nature and more likely to remain unpredictable mainly because of several factors like geopolitical concerns, contracted demand-supply fundamentals, growth and inflation pressures that put pressure on the global commodity market. It is a most interesting market environment but also a dangerous one as many wars have been fought and many nations & leading companies compete for scarce natural resources and food supplies.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.