Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Commodities - What Do You Need To Know?

Commodities / Commodities Trading Nov 20, 2018 - 04:21 PM GMT

By: Submissions

Commodities

When dealing with the buying and selling of commodities, there are things which you need to know. It can be a complicated business, and this means that people who buy and sell products can fall into some of the common pitfalls and experience issues.

However, commodities can cover a wide range of different goods and services, so there are things that you're going to need to know. To try and make sure that you've got a good understanding of how things work, we're going to be taking a look at a few of the things you need to know about commodities.


You Don't Need To Be A Pro To Get Involved

One of the most important things that you need to know about commodities is that to trade them and work with them; you don't need to be a professional. What you do need is to understand a little of what's going on, and how it'll affect your position. Some people choose to work alongside a broker for this, but that's entirely down to how confident you feel as a trader.

There Are Different Types Of Commodities

Commodities is an umbrella term for all the things you're going to see and experience. What you have to know is that there are many different classes and categories of commodities and this will affect your trading.

There are hard and soft commodities, which encompass two different markets entirely. A hard product, such as oil, for example, will have an impact on the economic health of a country or place. Soft commodities won't quite have this impact.

Learning the difference between the various types of commodities is essential for making sure that you are getting the most from your trading and that you're focusing your energies on a market which works for you.

There Are Things You Can't Trade

There are certain things which you can't trade when you work in the world of commodities. As of 2016, it's no longer allowed to trade things like water, electricity, lemons, eggs and diamonds.

There Are Different Categories of Tradeable Commodities

What you also need to appreciate is that there are different types of tradeable commodities. These are divided up into energy, metals, agriculture and livestock/meat. For each kind of product, there will be a unique market with its tips, rules and regulations, so you need to understand them before you start getting involved.

Overall, these are just a few of the different kinds of options which you need to consider when it comes to trading commodities and getting involved. Many people choose to work with brokers because the entire market can be quite complicated, but you're also equally welcome to go it alone. However, you need to know these kinds of things about the industry before you start. There's a lot to consider, and it can have a significant impact on the way that you trade. However, when you do manage to get into the world of trading, you'll learn that it can be a significant source of investment and an enriching world to be in.

By Dumitru Midon

© 2018 Copyright Dumitru Midon - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in