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Commodity Tips For Commodity Trading
Know why to get Commodity Tips from Sharetipsinfo for sure returns!!!
Format of Commodity Tips as Provided by Sharetipsinfo:
STI: MCX Commodity Tips
Buy GOLD Above 29550 (CMP-29535) Stoploss 29500 Target 29900.
Know the important of commodity tips:
There are two major markets in which an investor can trade in India. One is the equity market or the share market and the other is the commodity market. If you have the ability to invest large amounts and you wish to earn huge profits, then the commodities market in India is the ideal thing for you. Many people approach trading in stocks and commodities like they would approach gambling, but this is not the right way. There is a very small factor of luck involved in trading in both, contrary to popular belief. The most successful investors are those who educate themselves and learn the right tricks of how to deal in the commodity market. Commodity trading is all about wise investment and calculated risks. Here are a few tips you should keep in mind while trading in the commodity market in India.
The first thing that you need to have is knowledge about trading. You should have the complete information about the market where you are trading. You should educate yourself about the NCDEX and MCX which are the leading commodity exchanges of the country. You should also have in depth knowledge about the products you plan to trade in and their general behavior and trends in the commodities market.
The next thing is to open an account with a reputed broker who is registered with NCDEX or MCX. It is essential to trade through a broker in the commodities market and it has its own benefits like the broker’s extensive knowledge which can give you added guidance while trading. Once this is done, you can choose from a variety of commodities like silver, gold, non precious metals, edible oils, crude oils, agricultural products etc.
After you have selected the commodities you wish to trade in, you will have 3 to 6 contracts which will expire or become invalid after a specific period of time. Then you will have to set up to purchase or sell the commodities, you can also do both at the same time. The profits in commodity trade are mainly based on margins and you will have to pay the exchanges a particular portion of these margins for being able to trade with them. Usually the value of the margins varies from 5% to 20% and is changed by the exchanges periodically. These changes usually occur when the market becomes too speculative.
One of the most important tips that you should keep in mind while trading in commodities in India is diversification. It is very important that you don’t place all your bets on a single commodity or a single market. Instead you should distribute your investment as widely as possible. At the same time keep a look out for even the smallest bit of information that may be concerned with the commodities that you are trading. You should not completely follow the actions of other traders who may only be speculating. You should apply your own techniques and wisdom while investing.
Other things that you should keep in mind include the fact that most people will want to sell or buy contracts at the last minute. They keep waiting in the hope that their profit will be maximized. However this is not an advisable method of investing in the commodity market. Most people do this because they lack knowledge. Hence before you buy or sell commodities, you should calculate profits and the future prospects of the commodity as well. You should only buy or sell at a time which is in your favor. If instead you wait till the last moment it will be very much like gambling where either you may gain a lot or even lose a lot. The profits and losses are automatically adjusted in your account. If your account is short of money, your broker will ask you for a cheque.
The commodity market can be very volatile and unfriendly for the person who does not know his/her way around. Hence it is important to have some guidance especially in the initial stages of trading. Sharetipsinfo provides such tips on its user friendly website, along with many related articles and other material which educates you on how to deal in the commodities market. You can take a free trial and experience the benefits for yourself.
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