The anticipation and forecasting of the Commodity signals are the most essential parts in trading Commodity markets. The following paths can be followed while trying to start the Commodity trading business.
1)Technical analysis based trading
2)News based trading
3)Advisory Firm based trading
4)Strategy based trading
Technical analysis based trading
Technical analysis is a whole field of analyzing price movements. Charts of various types including price movement v/s time are primarily drawn based on different time scales. These graphs are drawn for identifying trends and buy and sell signals. Also, various indicators like moving averages and plotted to get various buy and sell signals. The technical analysis should always be complemented with the Fundamental analysis. A combination of the Technical analysis and Fundamental Analysis gives the best results.
News based Trading
News has a substantial impact on the price movements. Thus, if a trader can get the news at the proper time he can anticipate the rise or fall of the markets or a particular commodity. Thus news based trading is effective provided we get them on time. It should be noted here that the timing of trade is very important in the news based trading. One should try to find out the sources, from where he gets the news at the right time.
Advisory Firm Based Trading
Many traders do trade based on the advice from the advisory firms. These advisory firms provide free Commodity signals, in the beginning to judge the service provided by them. Then they charge some amount for their advisory services. These advisory firms have expert technical analysts who on the basis of their analysis give buy and sell calls.
Strategy based Trading
Strategy based trading is the use of a particular strategy for trading. The strategy can be intraday strategies like first hour trading, gap strategies or pair trading strategies or can be any other strategy. The trader can paper trade the strategy first before start trading.
Thus, the above strategies can be followed to gain good profits and be successful in Commodity trading.
Ideal tactic for Intraday Trading
Intraday trading is not easy and one must follow some strategy to trade in Intraday Markets. One of an important strategy to trade in the intraday market is to trade and take small profits. This type of trading takes advantage of the movement of the price signal. The trader trades multiple times and adds up to the profits. Thus, trading in the smaller price movements and in multiple lots will fetch good profits. This is the intraday strategy followed by many traders.
Trading in the Commodity market and Stock Market should be done by taking the advice of expert analysts in the form of MCX tips and best stock cash tips.