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Why Learning to Trade Commodities Could Boost Your Commodity Trading Results

April 20th, 2018 Comments off

Your decision to start learning to trade commodities will give you a completely new insight into the whole world of commodity futures trading. This could be within a specific sector such as grains or precious metals or perhaps across the whole spectrum of global commodity markets. Now doubt you have heard concerns about energy security and the crude oil trade on the New York Mercantile Exchange, and of how the price fluctuations can be caused by a whole 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?

If you want to achieve success in these markets, you first need to find a very good commodities trading provider. So how will you go about learning to trade commodities? What are the key knowledge areas of trading if you want to move ahead in commodity markets? Look out for locations where commodity trading training courses are available. It is more than likely you will have a choice to either attend lessons at your chosen location or study from home using an online training program .

What are the advantages of attending a commodity trading school? There is face to face contact with tutors and opportunities for one to one coaching. The coaches may either have their knowledge from courses or they have perhaps trade the commodity markets and so have real live trading experience, which is a valuable asset to have in a coach. When you learn to trade commodities in a classroom you can network with like”minded colleagues, sharing ideas with colleagues.

While on location you benefit from watching “live” trades executed by your tutors, who can give you feedback about the price action. It is arguably better to understand a technique when you observe it happening in real time, rather than in theory. Here you get a sharp edge to your learning curve in commodity trading, and the coaches can offer you help as you tailor your personal commodities trading plan. The expansion of global trading centres means that you are likely to find a training centre close to your home, such as in Dubai, Singapore, London, Toronto, as well in US cities like Philadelphia, New York, Milwaukee, Dallas and Chicago.

Let’s look at the alternative of training courses for commodity trading online. What are the benfefits here? If your commitments mean you cannot get to a centre when the courses run or you live too far from the location, the online version is ideal. When you take up this option you have maximum flexibility and you cover both technical and fundamental aspects of trading.

The online commodities trading packages most likely provide students with e mail support from the tutors along with resources like charts, blogs, forums and video to supplement the main material. Along with CDs and DVDs software may also be downloaded so students can link up with the markets and trade without committing capital.

So you are about to start learning to trade commodities. What will be covered? Broadly speaking, courses focus on fundamental analysis, that is supply and demand for commodities and how these are affected by inflation and in the case of crops, weather patterns. Traders also use technical analysis to compliment the former approach. This includes looking at commodity charts for price action, using techniques like Fibonacci numbers, Japanese candlesticks, moving averages, volume and support and resistance lines.

You will also see how easy electronic trading of commodities can be and you will learn what a futures contract is and how to place orders, set your commodity futures margin, along with an appreciation of why market participants hedge their positions. Then there is the matter of managing risk and minimising losses of capital in what are leveraged instruments. And when you start learning to trade commodities you will certainly cover the important role played by psychology when you have to stick to your commodity trading plan.

The author, William Davies, contributes articles for a blog on Commodities Trading, offering an educational resource for those keen to learn more about markets. Discover how you could begin learning to trade commodities here.

Assessing Forex Accounts: Mini vs Demo

March 29th, 2018 Comments off

The standard Forex account has a diminutive version labeled as a Mini account. The minimum amount needed for forming an account is $2000 for the standard account. Whereas, the minimum for a mini account is barely $400.

With regards to trading lots, “mini lots” is the phrase used for Mini accounts. For a Standard Foreign Exchange account, the pip value is $10 meaning if the market moves opportunely for you in say 100 pips then you would make $1000. The Mini account has a much shorter pip which is $1 so you just get $100 from a opportune movement of 100 pips.

Should you want even shorter account, there is the “Micro account”. For simply $25, you can commence such an account. Here you make $10 if the market moves favorably by 100 pips.

For those simply testing the waters, the baby brother mini accounts would be optimal. While there are demo accounts at hand that do not need money to create, these mini accounts have advantageous characteristics.

This characteristic is that you will yet be applying honest to goodness money. Using it grants you to trade in a manner that will resemble your trading behavior in the event that you settle to open the standard FX account.

You see, with a Forex demo account you actually have nothing at risk. In fact, people are likely to “play” with “play money”. This is the reason so many novice Forex traders do fascinating things in their Forex demo account but then do badly when trading with real money in a standard account.

So a mini account, seeing that it uses real money, will tend to show more precisely your authentic behavior in a standard account. Its an actual trading scenario that will whet your skills while admitting to risk just a petite sum of money.

So you don’t defeat the purpose, you must, for all intents and purposes use the same method of risk analysis and have the same consideration for the mini as you do your standard account. This will give you the self control desired to succeed in forex trading.

Once you accomplish success in trading with your mini account, moving up to the standard account can be carried out with no scruples about your aptitude.

Forex trading requires a calculation of forex profits. Forex markets move quickly, get forex trading training to keep on top of it.

Forex Analysis: Which Type Is Better?

March 8th, 2018 Comments off

Fundamental and technical analysis are the two vital mechanisms used in the foreign exchange market.

1. Fundamental analysis concerns itself with scrutinizing socio-political and economic forces and concluding their effects on the market.

2. When the analysis is conducted specifically on the use of charts and graphs to study price movements and to point out trends, this is called TECHNICAL ANALYSIS.

So which is the more fitting avenue? If you check out forums and websites you will see many traders heavily supporting one or the other. Those who like to depends on charts will tell you that the only way to make money with currency trading is to distinguish trends and jump onto them as quick as possible.

However, those who regard fundamental analysis will maintain that the solitary drivers of the market prices are socio-political and economic attributes, a fact that has been proven time and again in maximum of the movements. They describe that any association between the charts and real time movements are completely by chance.

That assertion should be taken with a grain of salt. While the direct and gigantic effects of economic changes is incontestable, in post major announcements situations and relatively event and change free times, technical analysis may be of assistance in predicting movements.

But if you place all your confidence in technical analysis, unexpected announcements in influential financial news will perhaps catch you off guard. Since you would be relying on charts and not news, you may end up picking the unfavorable time to trade. Such an occasion could be calamitous.

So the crux is that there are economic circumstances behind the larger scale rises and falls in the market, but there are also characteristic patterns that can be poinpointed in the short term. Sighting these patterns and trends, while keeping one eye on the economic and political news, is the best method to predict future price movements. And predicting future price movements, definitely, is the way to make money with currency trading.

Markets are sometimes characterized in terms of elasticity as they can move in either direction and fall back to their starting or another position. The aspects that stretch the market are the fundamentals of socio-political and economic forces. How much it will stretch and where and when it will come is the area of technical analysis.

The deduction then is that a smart trader utilizes both methods. So to unceasingly make profits in the forex market you must understand when to use which tool and how much credit you will give to their reciprocal, predicted outcomes.

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Hedging Your Bets With Financial Spread Betting

December 11th, 2017 Comments off

Many traders in the stock market have lost money, while few have made money. And no matter how easy online e-books say dabbling in this market is, it actually isn’t. Financial spread betting is another matter entirely, it is a different way of trading in stocks and shares, and online traders are able to speculate on the prices of stocks and shares without any assistance from stockbrokers.

The beauty of being able to speculate on the movement of shares and stocks without the assistance of a stockbroker is that you don’t have to pay their commissions. Basically you make a spread around live market prices and place a bet on whether the prices will drop or rise.

The word “spread” describes the sell (bid) of buy (offer) price. The price is calculated by the company offering the spread bet. Essentially they take an existing share price for example the FTSE. If the price of this stock is 4729 for example they will quote a price of 4727 – 4731. The speculator has to decide if the price will go up or down and places their bet accordingly.

To open a new position in the market a very small deposit is required, generally about dollar, euro, pound10 – 40. Each bet is on each point or tick in which the market moves, either up or down. The stake is usually 1 on each point of movement and will represent either profit or loss.

Each financial market has their own maximum stake allowed, so you bet your 1 pound, dollar or euro per tick (point), choosing a bet that the market price will increase or alternatively, drop. If your wager is correct then you win or rather make a profit which is the amount of your wager or stake multiplied by the amount in which the market moves in your favor. If you wager is incorrect you lose your stake multiplied by the amount of points the market moves in the opposite direction.

Because of this fact, the financial spread better has to understand that the market is often able to move quite substantially in the opposite direction to the wager made. This can mean a substantial loss, but by the same token, if the market moves in the direction predicted, a substantial profit can be made.

In the UK profits from spread betting are considered to be the winning of a “bet” and this makes them free of Capital Gains and Income Tax.

It is highly recommended that trader who is new to spread betting open a demo account first before signing up for a live trading account and depositing funds. The demo system will mirror exactly what happens in the live trading account and will come with a beginners guide to the system.

Being exposed to the spread betting system with no risk involved is the best way to learn all about it. Only once the trader is confident that they have the concept firmly in their grasp should they consider opening a new position in a live account. Make sure the company you choose provides a demo account and beginners guide!

Before starting in Financial Spread Betting Strategies, check out the authors review on ODL Markets Trading

Forex Review 101: The Basics You Should Know

February 25th, 2017 Comments off

Almost two trillion dollars is traded daily on the Foreign Exchange Market and is the preferred trading of choice amongst investors.

Why? Because you can easily liquidate your trade into fast cash and what trader wouldn’t mind that? So what is the Foreign Exchange Market or Forex as most know it as? It is a trading system similar to the stock market but quite different at the same time.

But if you are trading in the forex market, you trade with many other countries and currencies. In other words, FX market trades are global. You can also trade in the FX market twenty-four hours a day, while the stock market has set business hours.

Also, there are no set business hours, so you can trade twenty-four hours a day. This is what makes it the preferred choice of trade.

But the forex market trader must be disciplined as the US stock market trader, so that they can read the market signals that will help them determine when to enter and exit the market.

They suggest that a trader must learn to be disciplined and not let their emotions get the best of them in order to ride out the long term and make the profits they hoped for.

Market signals come from charts that have a mathematical formula tied to the prices and times within the trades.

Traders use these one-minute and sixty-minute charts as a crucial trading signal.

Therefore traders observe and use these one-minute or sixty-minute charts carefully, which are updated constantly, and are a major trading signal for them.

If you would like to try your hand in the foreign exchange market, you will want to observe all the market signals and patterns and trends so that you can make the best trading decision and the most profit in this lucrative system.

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