Commodities | Emini Day Trading

Posts Tagged ‘Commodities’

Latest Trading Commodities News

By On September 14, 2011 No Comments

MF Global To Realign Global Equities Business; Cuts Jobs Abroad
MF Global Holdings Ltd. (MF) plans to realign its global equities business as the futures broker makes the transition into a commodities-focused investment bank. The company will reduce equity sales, sales trading and research staff in Europe and Asia …
Read more on Wall Street Journal

Commodities trading offers shelter from economic slowdown
By Linette Lim | Posted: 13 September 2011 2119 hrs SINGAPORE: HSBC said its commodity trading volumes in Singapore grew 50 per cent in the first half of this year. As growth in the West sputters, HSBC said the commodities business is booming, …
Read more on Channel News Asia

Technical Analysis: Commodities

By On August 31, 2011 No Comments

Technical Analysis: Commodities
by Nicole Elliott – Mizuho Corporate Bank | View company's profile Comment: Another dose of the jitters as spot Gold hits our target at $ 1900.00 (record high $ 1911.46), matching February 1980's record $ 300.00 monthly trading range. As we warned in May, …
Read more on FXstreet.com

Debate Heats Up Over Commodities Holdings
The list contained more than 200 firms and traders, ranging from Goldman Sachs Group Inc. to Yale University to a Danish pension fund, giving a rare view into the murky world of commodities trading. Sen. Bernie Sanders (I-Vt.), who has distributed the …
Read more on Wall Street Journal

Unlike Banks, This Wall St. Group Embraces Dodd-Frank
In April, ICAP hired Patrick McCarty, the former top lawyer for the Commodity Futures Trading Commission and a Senate staff member who helped write Dodd-Frankâ€™s derivatives section. Robert Paul, once the general counsel for the commodities regulator …
Read more on New York Times

Market tips for making money with commodities

By On August 31, 2011 No Comments

Find a volatile market that you want to trade. High volatility might be bad with stocks, but it is a very good thing with commodities. The more volatility in the market, the more opportunities there are to make money.

Instead of trading commodity futures, consider trading commodity options. People have a bad taste in their mouth from all the horror stories they have heard about trading futures, and most of the bad stories are probably true. To make this simple, when you trade futures contracts you can lose more money than you put in, which in my opinion is a very risky bet. Trading a commodity options contract is much safer because you can only lose what you put in, therefore you don’t have to worry about losing your life savings.

It doesn’t take a lot of money to make a lot of money!! Most people think you have to have a lot of money to make money with commodity options, and this is just not true. If you have a couple thousand dollars to trade with, you can make a nice bundle of money.

Don’t put all of your eggs in one basket! Once you have found a volatile market to trade don’t listen to all the speculators, and put all of your money on what they say. I can’t even count how many times I listened to a specialist and lost my money. The beauty of trading in a volatile market is that you don’t have to know which way the market is going.

When you fish on both sides of the boat you are more likely to catch a fish! What I mean by this is purchase a call option with the first thousand, which means you make money when the price goes up. The second thousand needs to be spent on a put option, which means you make money when prices go down. This is a very basic concept that many traders use, but is highly effective in a volatile market. This gives you insurance on your investment, and eases the stress about which way you want the market to go. I have personally made over twenty thousand dollars in one trade using this strategy, and investing no more than two thousand dollars.

Take the money and run! Before you start trading decide how much money you want to make and stick to it. Understand that profit is profit no matter how big or small it is. Don’t get greedy just because the market has made a big move, because it can turn against you in a second, so take your profit. This is one of the most simple, but yet hardest thing to do when trading. A one thousand dollar profit may not seem like much, but when you do it five to ten times it can be quite substantial.

Written by brando27
Day trader, full time student, musician, sports enthusiast

How to buy commodities

By On August 30, 2011 No Comments

Futures contracts on commodities are investment vehicles that invest in bulk goods, such as grain, oats, corn, beef, pork bellies, coffee, gold, silver, oil and natural gas. Commodities are traded on an exchange or in the cash market depending on the commodity type.

Investors, who do not trust stock performance, particularly in periods that economies experience contractions, are more likely to invest in commodities in order to achieve effective diversification of their portfolio. Investment managers assess that a diversified portfolio should have an allocation of at least 5% to gold and other commodities. Although exchange-traded funds (ETFs) are considered to offer such an exposure, still trading commodities seems to be a better solution.

On the other hand, commodities are considered a risky investment. In fact, when an investor buys commodities, he buys futures contracts, which expire on maturity date. This means that when the contract expires, the investor either gains the difference or he gets the commodity. However, when investors buy commodities they do not intend to use the commodity. So, in effect, if their position is not closed, investors do not gain any added value for commodity trading. This is why commodities are considered too risky for what they are worth.

Investors that invest in commodities are usually advised by their traders not to risk too much of their account value on a single trade. Instead, trade must be made in stages, particularly if the market remains relatively stable. The reason is that, when the market is highly volatile trades are made at a quick pace. However, commodities should not be followed on a daily or an intra-day basis because their nature requires to be forgotten after initial positioning and until maturity.

Instead, when the market records an upward trend, investors should take advantage and gradually sell at least 25% of their portfolio holdings in commodities to lock in profits. Moreover, they should have always set clear entry and exit points so that they avoid lowering their trading stops expecting that a losing position will recover.

Trading in commodities futures requires keeping track of the fundamental reports that affect the market. Investors should be continually informed about news coming out in order to adjust their portfolio accordingly. The aim is to maximize profits and minimize losses. while adhering to the original investment strategy.

Written by Christina Pomoni
Financial Adviser – Freelancer Writer