the idea of commodities trading intrigues you, a managed portfolio
may be the best introduction. Even if you have traded for a few
years, managed accounts take the emotional investment out of trades
and add more technical savvy. Nevertheless, commodities add a dynamic
dimension to your trading repertoire.
The easiest way to think of commodities is as raw materials. Commodity Investing has become simpler over time and thus more available to even those with only modest market experience. Four categories sum up commodities and are as follows with some examples.
– Natural gas and crude oil
– Cereals like wheat and corn as well as other essentials like coffee
beans and sugar
– Precious metals such as gold and platinum along with copper and
and meats – Includes not only live animals such as cattle but also
beef and pork bellies
of Commodity Investing
provide investors with the means to diversify their portfolios. Since
commodities often move against stocks and other traditional
exchanges, they provide you general protection from volatility. Your
portfolio will achieve overall stability despite the greater
volatility inherent in trading commodities versus stocks and bonds.
will not provide you with automatic profits, but proper management
should boost your returns.
advantage of adding commodities to your trading is support for your
assets during periods of high inflation. Metals like gold and copper
illustrate the resilience of commodities during any economic
upheaval. While commodities usually perform well during inflation,
stocks and bonds tend to fall in value.
to Trade Commodities
can venture into commodities in several ways. However, you are most
likely going to exercise futures or speculative trading. You will buy
a contract of a chosen commodity based on whether you think the
future price will increase or decrease.
alternative but similar premise is options trading where you place a
call (price goes up) or put (price goes down) order much like you
would on the Forex market. In both methods, you control your trades
by employing a stop. A stop command dictates your range before the
system automatically takes you out of the trade. When monitoring your
positions, you can also manually end the trade to prevent huge
Whether a beginner trader or experienced broker, visit us at Wisdomtrading.com to benefit from our managed futures trading. We offer professional assistance to find investment opportunities and preserve your wealth through a rules-based, systematic, and unemotional approach to commodities investment.
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