Five Basic Tips on Commodity Trading

Commodity Basis Five Basic Tips on Commodity Trading Some basic tips that you can follow to be successful in trading commodities: The most important tip of all is this: do not over trade even if your life depended on it. There are times when the temptation to over-trade will be difficult to resist and that’s when the real problem begins.

Pay close attention to trends because that’s your best friend.

Stick to short term trends because at the end of the day, the currency of commodity trading depends on success rate.

Avoid adding to losing positions especially when it comes to commodity physical trading. Adding to positions that are already losing will only make you lose more money.

Ignore margin calls. These only occur when there’s over trading, or when the position is losing. The rule of thumb is to keep 50% of the total portfolio in cash, and the remaining 50% on the trades. That way, if something happens, it’s easier to manage the losses.

The last and most important tip is to always have a game plan. Stick to it, even during losses because that’s the only way to succeed. The numbers and the percentage of success will improve eventually.

CommodityBasis.com also works closely with the United States Department of Agriculture (USDA) to make sure that their information is reliable and that the prices they show on the website are accurate.

Commodity Basis gives you real time updates on futures prices, commodity cash, and basis for grains, meals, oils, and oil-seeds. This platform helps promote transparency among those involved in the agricultural market.

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