COMMODITY BASIS Commodity Trading Tips and Strategies Strategies in commodity trading are important when it comes to commodity future trading. The construction of a strategic plan before jumping into the world trading is commodities to avoid risking any capital or wasting time, effort, and money. Getting updates from commodity newsletters and financial news does help, but that’s not enough to make a trade succeed in the business.
It’s also important to note that commodity trading tips and strategies are not cast in stone since these will undergo changes through time, once the trader experiences the risks, rewards, and constant changes in the markets.
Commodity Trading Strategies
One of the popular strategies in commodity trading is called the Range Strategy, where the purchases are done at the bottom of the range (support) and the sales are done at the top (resistance). This strategy relies so much on the capacity to buy commodities after the sale makes the price low enough to be counted as oversold.
Another strategy is called Trading Breakouts, where traders purchase commodities while it’s still high, and sell when it’s low. It’s easy to spot highs and lows on the chart since they represent both the peaks and the troughs of past movements. Fundamental Trading Strategy is dependent on factors that affect the demand and supply for the commodities. Rookie investors and traders will have a very difficult time with the Fundamental Trading Strategy because it requires so many hours of number crunching, research, and homework.
Commodity Basis CommodityBasis is a platform that gives traders real-time updates about the status of commodities and enables them to forge partnerships and networks farmers, traders, people working with the USDA, and potential buyers from different parts of the world.
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