Tips On Investing In Commodities

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People who are new in the investment business should not rush into commodities trading without any preparation because in this type of investment you can lose a lot of money as well as make a lot of money. Here are some basic tips on investing in commodities to help you get started and to avoid loss of capital.

There are a lot of reasons why one should choose to invest in commodities. Basic commodities always sell well because they are the things people use every day. But if you are new in the business, be aware that you are competing against people who are in this business for years already. You must spend time researching on this type of business. You can get plenty of information about it in the Internet. There are hundreds of websites offering free advice on how you can get started wisely. Investment forums can be useful because you can have discussions with others who are experienced investors.

Warning About Speculations

You must be warned that speculations on commodities are among the riskiest places. It belongs to another category other than regular investment. When you think of it, exchanges in commodities are actually supercharged betting areas composed of hyperactive markets in which you bet on the movements of different products. The list includes grains, mean, gas, oil, raw materials and precious metals. Even treasury bills and other financial products are included in the list.

Risks Involved

It carries huge amount of risks to individual investors, but commodities markets were set up to spread price change risks among many players. For example, with the use of future contracts, a farmer may sell his crop even before it is planted even if in the future he can get a higher price for it. If it happens that there’s a demand boom during harvest time, the futures contract buyer wins big. However, if the market gets flooded by a bumper crop, and the prices nosedive, the speculator ends up with nothing or even a substantial loss. Whatever happens, the farmer will have enough money stashed in a bank for next year’s planting season.

So if you join any of these transactions and decide to buy a contract, you will be the one facing the risks. And since commodity contracts allow you to have control over large amounts of soybeans, grains, oil or gold with little money, your holdings will be greatly affected even by small movements of prices. Even the professionals and experts are affected by price moves. That’s why investing in commodities needs careful planning and thorough preparation.

Blogger, Michael Hastings, appreciates your interest. He is an analyist at How To Trade Commodities and is involved in gold trading. Click here to learn more

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Forex Market Trading Basics

The forex market can be intimidating for someone who has never invested in it before. What is a ticker, what do the symbols mean and how exactly do pips work? Well if you really want to learn the forex market then you’re in luck, that’s what this article is all about. These days, due in part to the online forex market, things are wide open for new-comers and the numbers swell up every day. Don’t be one of those who’ll fall to the way side too soon after they’ve begun.

Don’t Play to Win, Think to Profit

The first thing to remember with the forex currency market is that it’s only gambling if you take spontaneous, unproved actions without strategy or research; successful forex traders definitely do not make their success this way. Games may be fun, but losing money you don’t want to lose is definitely not fun. To begin with, never invest real money in the forex exchange market right off the bat; you’ll want to open a Metatrader 4 demo account and virtually play the forex market for at least two months. Using the results of those two months will give you an idea about how ready you are and with 90% of all new forex traders failing it’s a pity that more people aren’t satisfied with practice to begin with; practice makes perfect after all.

Follow Trends of Success

We’ve all heard the stories about the fish that swim upstream and make millions trading in the forex market, but these will always be the exceptions to the rule. Trends are your friend and you should always follow through on them. When trending is up, you do not want to be buying and when trends are down you do not want to be selling; it’s as simple as that to play it safe. Another safe bet is to never risk more than 2-3% of your total forex account which allows you to weather the tumultuous times. An unsuccessful trader will usually lose their account after a dozen or so unprofitable trades in a row; losing 50% of your account means making 100% to break even.

Trade With Your Head

Finally keep calm if you lose out on a trade because immediately going on a revenge trade frenzy will without a doubt lose your money. Forex market success is built on calm collected and logical trades with low-risk; slow and steady wins the race. The forex market can only threaten your life if you put that life in its hands and disrespect it; otherwise it’s like a big kitten.

Eugene Calvini is a writer and forex enthusiast; his experience with finding the best online CFD broker has helped him become a successful Metatrader 4 forex broker.

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Early Warning Signs that your Forex Broker a Scam

A trader whom we shall call Mr Dee sees a web page advertising a chance to make money from trading Forex. But this web page is one with a difference. He is taken in by the glamorous video of a pretty brunette detailing all the benefits of trading with the broker whose sales page he is looking at. Just then, something she says catches his attention. The broker is offering him a 100% bonus. He cannot believe his ears, but when he decides to pitch his tent with this broker and wires in $10,000. To his surprise, he is credited with an extra $10,000. But that is when he is told by his broker that he has to trade a certain number of times before he can withdraw any profits. He keeps trading, and when he then decides to make his first withdrawal after fulfilling the terms of the bonus, he gets an email saying he has allowed third party trading on his account, and his account is suspended and all funds seized. The broker cuts off all communications with him, and he is left bemused. Further investigation reveals that the broker is in a location which is completely unregulated.

 

In another scenario, another trader notices that he keeps getting stopped out in one of his Forex accounts even when the price quotes on other trading accounts indicate that the price action still had a few pips to go. He is at a loss as to why this is the case, and all emails to his broker are met with unconvincing responses.

 

In yet another scenario, trader notices that any time he trades high-impact  news items, and his trade is in a profit, his trading platform freezes up, and he cannot close his trades, until when the market has probably reversed against him. When he tries to withdraw any profits, he has made, his broker finds one reason or the other not to honor the withdrawal request.

 

If your broker or any other broker you know has engaged in one or all the practices mentioned above, then that broker is a scam broker. The sad thing is that many cases like this occur, and they are not rare; they are commonplace. For any genuine broker out there, there are 10 scam brokers in operation. The wide geographical location and the absence of a specific global legal framework has made it difficult to pursue and prosecute such scam brokers, and traders have to rely on personal due diligence and a bit of luck or prayers to ensure that they pitch tents with the right brokers.

 

Here is a list of identified scam brokers, who have closed shop and disappeared with traders’ funds.

 

  • CrownForex.com
  • CRE Capital Corporation
  • CDH Global
  • Forexgen.com
  • GCI Trading.com (GCI Financial)
  • BForex.com

 

There are a whole lot of others out there. All you need to do is to check on Forex forums, and you will get so much information that it will almost be criminal for you as a trader to fall into the hands of these scam brokers.

 

Article was written by Alexander Collins. As a general rule, always choose brokers that are regulated and have a good track record when it comes to trading conditions and withdrawals. Stays the question: “How to choose a Forex broker?” Visit my Forex blog to learn how to choose a broker wisely, and what unethical tricks Forex scam brokers use to rip of retail traders.

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Who Says You Can’t Make Money On The FOREX Market?

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There are a lot of scams and get rich quick schemes being touted in the media, both on and offline. While naysayers might tell you that you can’t make money, and that you’ll certainly loose money, when investing in Forex, know that with some basic education on the Forex market and how to trade, you can make money–really good money–with Forex. Here are four tips to help you as a beginning Forex trader.

Don’t Jump In Head First: Unless you’ve lost your job, don’t quit your day job until you are making at least half of what your normal pay equals, on a consistent basis. If you are used to brining home $4000 a month, make sure that you have four to five months where your Forex trades earn you a minimum of $2000. Treat Forex like your part-time job while you learn the ropes and make your trades in the evenings, weekends or vacation days. Since the Forex market is open round the clock, you can make trades anytime. Going from part-time to full-time income probably won’t take you as long as it takes to go from $0 to a decent part-time income.

Start Small: Once people begin to see just how profitable Forex is, they tend to want to mortgage the family farm, so to say, in order to maximize their profits. This is a key reason people doubt that you can make a long term living trading Forex. Assuming you have a steady income now, spend no more than a week’s pay for your startup investment. If you have a family or people who depend on your income, you might want to be a bit more conservative. When investing it’s best to take small, steady steps rather than huge leaps if you are planning to be in it long term. As you make more and more profitable trades, you can put more money into them thereby increasing your risk and profits.

Get the Support of Your Partner: Far too many people who get into new businesses without telling or getting initial support from a partner. You really need to do this especially in a marriage, long term relationship or when your finances are combined because your partner can be your number one fan and support you through the learning stage when more losses tend to occur. On the other hand, they can also be your worst enemy if you start spending your time and money at the computer making trades when they don’t agree with what you are doing.

Use Educational Tools Wisely: Remember to treat any and all programs and Forex trading software pieces as tools, not a fast track to earning cash. Forex is part luck and part knowledge. Using the knowledge you learn will put you in a better position than someone who just relies on luck.

Follow these tips as you start making money on the side with Forex to show others that you really can make money with Forex. Remember to treat it as a business, make trades and study as much as you can on a consistent basis and a year from now you bank account could be a lot bigger!

Chad Smith is a Markham car insurance agent who spends a great deal of his spare time watching the foreign exchange markets.  If you’d like to get in on currency trading you’ll need to start somewhere.  There are a great deal of apps which will allow you to play the market using fake money.  When you feel confident you can move up to trading with your real money.  If you’re short on cash you can always reduce your expenses.  One thing that many people overspand on is their car insurance.  You can compare car insurance quotes at Kanetix, and often considerably reduce the operating expense of your automobile.

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How I Became A Professional Day Trader

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Like many people out there with dreams of hitting it big time in the Forex market, I initially started trading by signing-up to a Forex trading course but with the intentions of retiring not to long after opening my first micro account. Looking back at my journey, it all seems laughable how I genuinely believed I could become a superstar trader with very little experience and beat the professionals who have been in the business for a number of years. However on a serious note, something which I can’t laugh about is the fact that many people still hold on these false beliefs and expectations of retiring early through trading. To clarify this point, it is possible supplement your current income and rely on trading for your sole source of income and potentially even retire. However, it is only after taking all the appropriate steps in terms of learning the relevant skills to acquire the competence and confidence to trade that you will reach your trading goals.

After making a plethora of mistakes throughout my Forex training, I hope to dispel some trading myths and also help new traders avoid the same mistakes I made. One thing which changed my approach to trading as well as my trading results was simplicity. Instead of trying to master every indicator, time-frame and new strategy I discovered from a forum, I focused on choosing a simple approach that enabled me to master a specific set up on one market. With time and experience I discovered that I gained a lot of confidence as my competence and results improved. I put my improved performance down to spending plenty of time mastering this specific set up. That is, by getting as much time chart time as possible I was able to gain an insight and an understanding of how this set up works. Once my first set up was fully internalized, I started back testing and paper trading a new trading strategy (but not before I made sure that I completely owned my first strategy).

To conclude, although this article isn’t meant to be an exhaustive list of steps to take to reach consistent profitability, I hope you have realized that the strategy you use is not as important as your patience, mental attitude (psychology), money and risk management and support you have for trading. The trading methodology you decide to use is only important to the extent that it has a positive expectancy; everything else is more to do with you as a person and how you approach your trading from a mental point of view.

A Forex trading course is the best way to start you career as a Forex trader. Make sure that you continuously exercise patience throughout your Forex training and you should be well on your way to becoming a successful trader.

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Reasons to Use a Demo Account

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When it comes to trading Forex it is important that you have significant experience and practice, which can best be attained through using a demo account. Using one of these accounts gives new traders the opportunity to practice their trading skills and strategies without using – and risking – actual money. Using demo accounts to practice trading Forex means that you can see which strategies work and which don’t so that when comes to trading on the actual Forex markets you can do so with an effective strategy in mind.

 

By starting off your trading career by practicing on s meta-trader demo account will give you a good understanding of how this platform works. The metatrader 4 demo account has a number of features and tools that traders can use to sharpen their skills, as well as get accustomed to using the platform before accessing it live. One particularly good feature of the metatrader 4 download is that it does not expire and other than the credit balance there are no limits so you can keep practicing your strategies until you are completely satisfied with them.

With the Forex demo account there is virtually no difference to trading to real money. As with a real account you will be expected to comply with the rules and regulations of trading Forex, and you have full access to customer support as you would if you were using a live account. You can also use the live chat or email support for answers and assistance related to your online trading.

Upon opening your metatrader 4 demo account it will be issued with $100 000 of virtual money that can be used when making bids and executing trades. However, should your bids and trades be successful you will not be able to draw this money from the accounts as it is only a demo account and this currency is virtual and for practicing with only.

When using a demo trading account you will learn how to manage risk properly. This means that if you make bids that do not go as expected then you will have the practice and knowledge to get out of the situation. Using a demo account is a great way to learn about the risk that trading poses and to learn how to judge and predict currency and market fluctuations.

Keep in mind that it isn’t just novices who take advantage of free forex demo accounts – experienced traders use them to test new strategies as well. Ensure that you are very familiar with the trading platform by using a demo account to hone your skills.

Dave Tucker is a financial adviser who has a keen interest in Forex trading.

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