Monday, August 9, 2010

How to Make Money through Commodity Market Price Fluctuation?

Every day large number of people enter into commodity market with the hope of making big money through commodity trading. But the truth is that only few people make fortune on commodity market. Making big money if of course dream of most people but to make big money on commodity trading we have to consider some rules as follows;

  1. What goes up must come down. The trend will change the rule and the more it moves up or down the more extreme the move will be and that is how to make money with commodity trading.
  2. If you want to make money all you need to know is whether the market is moving up or down and how long it's being doing it for.
  3. Discipline is the key and without it you will not be able to make money over the long term. Sometimes you do have to cut your losses and get out. Know when to stay and know when to run. 
  4. Money does not make money in commodities. The trader makes money.
  5. Losses are cut strictly short, profits allowed to run, until the account grows twice or thrice of its original value.  Profit should then be take out and enjoyed.
  6. You don't put much money into the market until you understand completely the methods of successful trading and have done your homework in this market.
  7. The law of supply and and demand still hold sway(affect) in most commodity market.
  8. If you take time to learn basic approaches involved in successful trading, you will already be well ahead of most traders.
  9. The market is always right. If the market is headed in one direction, don't fight -switch. Winning commodity traders never try to outsmart the market.
  10. Calculate with the price chart, the volume of profit or loss holding a commodity a day, week or month.
These are some basic fundamentals you have to understand before diving into commodity market. Keep visit this blog for forth coming tips.

USDCHF Technical Analysis - Sell at 0.9955

USDCHF made a nice bull move from 0.9716 to 0.9990. Then USDCHF drops from over bought zone. USDCHF is trading below its 20 period MA on 4h ...