Deposit.redaksinet.com – As traders, there are many assets that You can use as trading instruments, ranging from forex, stock, commodity. By trading commodities, You can add portfolio diversification at once scooped up the prospect of profit is substantial.
Commodities such as oil, gas, and precious metals is an instrument that has an important role in the global economy, thus opening the opportunity for investors to take advantage of the price movement.
If you are interested in plunge in commodity markets, there is no harm in listening 10 tips on day trading the commodities of the following to increase your chances to be successful.
Tips Today Commodity Trading For Beginners
Interested in becoming a day trader in commodities? For beginners, trading of goods a day can be categorized as hard. Due to the instability of commodity markets, the investment can be very risky, especially to people who are not experienced. Here are some tips sniper to minimize the risk of Day Trading in the commodity market:
1. Select The Appropriate Commodity
The first step in day trading commodities select the instrument type what you want to trade. Out there there are many options, ranging from oil, gold, gas, commodities such as corn, coffee, and the like.
To know the products that suits You, learn a lot not only about the commodity itself, but also the movement in the market. Please keep in mind, commodities are very volatile, so You should be ready with the turmoil of the high prices that are more extreme than fluctuations in the forex market.
In this case, the commodity is popular with a high demand suitable for beginners because it offers a promising opportunity and have the dynamics of price movement that is relatively more easily analyzed. Popular here selected as a commodities trader and investor, and is often shown in the media. More info about commodity, the easier it is to learn the price.
2. Day Trading Commodities Precious Metals
Gold in the top 10 most popular commodities for trade. Today, the trade of the precious metal is seen as a store of value the wealth of the most powerful. Why?
Different currencies, the value of gold will not be eroded by high inflation. In addition, the price of gold is not directly affected by fiscal policy or monetary, not like currency which is the stability of the exchange rate to the moment of interruption. Therefore, gold is widely used by traders as a safe place .
3. Understand Demand And Supply
After selecting the appropriate asset, tip day trading commodities the next is to understand the conditions of demand (demand) and supply (the supply of) commodities. When supply and demand change, commodity prices will be changed.
The rules essentially, the price of the commodity will increase with increasing demand. The price will also rise when there is a scarcity of supply of a commodity. On the contrary, the prices of commodities will come down when faced with falling demand and increasing supply.
4. Read News Macroeconomic
Learn commodity trading day, it is important to understand the news macroekonomik. Because, commodity prices will always move in accordance with the theme of the macro that moment. A commodity that is produced in the area with a variety of political uncertainty will always volatile.
Take the example of commodity crude oil produced in the region of the Middle East. Then, automatically the price of Brent and WTI will be easily influenced by the tension in the region. By knowing the actual news in the country of commodity-producing, You can predict the increase or decrease in commodity prices.
5. The Relationship Between Commodities With Export-Import
Most developed countries release data of import-export periodically, and this report usually contained in the economic calendar. This update should be monitored by traders daily commodities, because of the change of data of import-export has a significant impact on commodity markets.
Different countries also different commodities. Each state can have different commodities to support their economy. As mentioned above, the countries of the Middle East is generally dependent on oil. On the contrary, countries in Africa supported by the agricultural commodities. New zealand is famous with pure milk while Brazil is one of the producers of the greatest coffee in the world.
Some of the commodities above can be affected by seasonal factors. The reduction of exports from the major countries of manufacture, a particular commodity will result in supply, which in turn will increase the price of the commodity. On the contrary, up and down the amount of imports of consumer countries of a particular commodity will also give effect on the sentiment of the instrument.
6. Determine The Indicators Trading Commodities
Tips Today Commodity Trading next step is to determine the technical indicators. As we know, the commodity market offers plenty of opportunity to profit from price movement. However, You also need to look for indicators that are designed to find a point of entry and exit is most appropriate.
Indicators recommended widely for trading in commodities is a Commodity Indices. This indicator basically have the level of which being the separator between the area of overbought and oversold. The position of the indicators in this area could be a reliable signal to locate the position of a purchase or sell when trading commodities.