Basics Of Commodity Trading

By: Jim Olivero

While commodity trading is known for providing rather volatile price fluctuations, the high returns are well worth the effort and the investment in most cases. One of the best decisions that you can make when expanding your investment portfolio is to put thought into commodity trading.

Commodity trading is capable of providing asset allocation that is truly ideal, and is also capable of giving you a bit of an extra hedge against inflation because you are buying into something that has a great amount of global demand. Commodity trading, as we know it today, came about for the first time in Japan in the 17th century, where rice was traded in contracts. It was a period when farmers and buyers came together and decided to commit to each other future prices negotiated on suitable terms in exchange of grain for money. This phenomenon soon sees a rapid expansion and popularity hence giving birth to the concept of commodity futures trading, as we know it today.

One of the best decisions that you can make when expanding your investment portfolio is to put thought into commodity trading. Commodity trading is not one of the investment vehicles that people consider right away, so there is a decent amount of nervousness and apprehension associated with when to invest, where to invest and how to invest. In order for an investor to be successful in the commodities market, savvy investors need to have a thorough understanding of the demand cycles that the market goes through. These savvy investors must also have a decent view on the different types of factors that may have an effect.

One of the ideal avenues for you to pursue is to invest in specific, select commodities that can be analyzed individually, instead of simply speculating about products that you have no real background information on. While it can be enjoyable to speculate on products that are new and exciting to you, sometimes this can be a bad decision as you will be making guesses without any real information about them. You should be investigating and buying into commodities as a way to expand and diversify your portfolio. Commodities are an excellent way to turn your portfolio into something more exciting, and then money should be your second concern.

There are many types of commodities that are traded in the international market such as:

- Soft commodities such as Cocoa, Coffee, Tea, Sugar

- Agricultural products like Rice, Corn, Oils, Cotton, Wheat

- Metals such as Aluminum, Copper, Steel

- Precious metals like Gold, Platinum, Silver

Forex Trading For The Absolute Beginner

By: Aaron Simmons

Forex trading has become a popular method of making an online income. Prior to venturing into forex trading however it is important that the absolute beginner start with some method of research and education in order to ensure a profitable investment.

Before even beginning to start on forex trading, one must first understand what the term actually means. The term forex itself is actually derived from a combination of two words- "foreign" and "exchange". Forex trading is basically the action of trading a countries' currency for another. Based on the movement in value of these currencies, it is possible for a forex trader to gain profit provided you trade the chosen currency at the precise time. Basically it is similar to ordinary stock trading with the difference of trading a currency rather than shares of stocks or commodity.

The proper forex training and education can be of great assistance for a newbie trader.

The first tip that many beginners will find useful before starting to trade is on market watch. As the forex market changes every minute, it is important for a trader to have an overall background view of the market first before trading a certain currency. Proper monitoring of the overall market can ultimately bring benefits in the long run.

Opening a demo account can also be useful for a beginner. With a demo account, one will learn how to manage the risks involved before going on a live trade. By doing this, the prospective trader will have a simulated view of trading by using fake money. Trading on a demo account involves no risk at all, but gives the future trader the realistic feel of live trading. Once one is confident after useful practice on the demo account, only then should one opt to proceed with real live trading.

Another important tip is on risk control and risk management. One must not be driven by utter excitement to trade in order to avoid substantial loss. Learning to cut losses by opting out of a trade at the initial stage will surely prevent from losing big money in the long run.

A method that has become currently popular today is on the use of artificial intelligence or more commonly known to forex traders as "bots"(short or robots) to do automatic trade for them. By using a bot, certain limitations and actions are set according to the trader's own specifications and taste before trading and the rest is done automatically by the programmed bot itself.

Many websites today offer various tips and techniques on forex trading education. Tips on risk management, basic account functions, trading using bots, etc. are widely available on the net. Perhaps the best advice is to try out the various demo accounts first to find which suits your needs the most.

How Can You Find The Best Forex Strategies?

By: Glenn Buckman

You have probably looked on the internet for different strategies if you are looking to get into forex trading. The ultimate question is if any of these strategies are reliable. There are a lot of strategies and advice being given on the internet, and choosing one is a challenge. This article will tell you some forex trading strategies that you can choose from.

It is important to remember that you can always create your own strategies before you read the strategies. Because this option requires more time and effort than most people are not willing to put in, this is not usually chosen.

A particular advantage is offered by each of the strategies listed below that the others do not. They all have the same goal, in the end, which is to help you realize a profit on your investment. All of these strategies are the most reliable, and are able to protect investors and help them to realize their profits.

A Stop Loss Order is the first strategy. By placing a limit on the investing power of that investor, this strategy is designed to protect investors. They can no longer trade, once the investor reaches the limit. This ensures investors do not run out of funds, and are able to invest in other areas.

The second strategy, which is commonly used, is Automatic Entry Order. This strategy only allows traders to place an investment when the price is right for them to purchase shares. The investor only invests when the price of the shares reache that price that they are willing to pay.

The final strategy is Leverage. You can use more funds than you deposit with this strategy. This allows the investor to get the most out of the benefits of forex trading, without needing to make anymore deposits. You are able to multiply the amount of your initial deposit multiple times to allow you to purchase higher priced shares. Investing businessmen will use this concept.

Choosing the strategy that is right for you depends on your personal preference. A strategy that works for one person may not work for another because every investor wants to realize profits in their own way and at their own pace. These strategies are meant to help you decide when to buy a stock to where to buy it. In order to survive in the world of stock trading you can use any of these forex trading strategies.