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Commodity Trading Strategies

There are many different trading strategies you can utilize when trading commodities. You can use some of these popular commodity trading strategies or learn how to develop your own.

Trading Crude Oil Futures
Crude oil is one of the better commodities to trade. It is a very active market and it is well known with investors around the world. There is usually no shortage of news to cause the price of oil to move from day to day. This presents many good trading opportunities, whether you focus on day trading futures or you are a longer-term trader or...

Knowing When To Take Profits in Commodities
Many commodity traders often fall into the trap of not knowing when to take profits on their commodity trades. Sometimes they take profits too quickly and other times they hold out for a big move and their quick profit turns into a loss. Knowing when to get out of a trade can often be very difficult, but there are some easy steps to take that...

Trading Futures with Options
With the combination of futures and options, a trader is able to come up with just about any type of strategy for trading a market. Utilizing options with futures usually makes a trade more conservative, but sometimes you can actually make more profits than using just one instrument.

Do Commodity Seasonal Trades Really Work?
Commodity seasonal trades have been around for a long time, but the original intentions of these trades has become very misunderstood since the late 1990s. Professional traders used seasonal tendencies as a solid fundamental reason for making their trading decisions. As this strategy was widely marketed by Jake Bernstein in the late 1990s, the...

Trading Commodity Spreads
Many professional commodity traders focus on trading spreads. A spread involves the simultaneous buying of one commodity and the selling of the same or similar commodity. Using spreads often cuts down on the risk of buying a straight commodity position.

Commodities - Buy Low and Sell High
Buying low and selling high seems like a fairly simple concept when it comes to trading commodities, but the lines can be blurry on whether the price of a commodity is low or high.

Specializing in Trading One Commodity
Some commodity traders make a good living from focusing on trading a single commodity. There are about 30 commodities that are fairly actively traded, but it is difficult to keep up with all the commodities and trade them. Some traders like the expanded range of opportunities if they follow many commodities, but a good case can be made for...

Trading Commodities Using Trendlines
Trendlines are an excellent technical analysis tool to use when you are trading commodities, futures, stocks or any other markets. They are primarily used for determining the trend of the market and the trendline establishes an excellent place to enter the market on a pullback within a trend. Trendlines also provide notice of when a trend...

Trading Commodities in the Right Timeframe
Commodities are often known for making quick and ferocious moves. Fortunes can be made or lost in a short period of time. However, commodity prices also follow long term supply and demand factors that can cause prices to trend in the same direction for several years. It is important for commodity traders to have the proper perspective of...

Keys to Trading Corn Futures
Trading corn futures can be fairly subdued during the winter months, while the summer months are not for the faint of heart. Corn is planted in the spring and harvested in the fall. This growing season is when most of the action in corn prices take place. The winter months usually deal with demand and how much of the harvested crop is sold on...

Trading Coffee Futures
Coffee is one of the more interesting commodities to trade. It is also usually one of the more volatile. Coffee is a member of the softs complex and most of these commodities are prone to wild swings in price.

Trading Breakouts in Commodities
A breakout strategy is one of the best strategies for tradingtrading trending markets. When people hear the term “breakout,“ they often think of a jail breakout. The concept is not too far off course when you apply it to the trading world. A market has to break out of a range in order to establish a trend. Many tries are made by the markets...

Moving Averages for Trading Commodities
Moving averages are one of the most popular technical studies used in commodity and stock trading. The most commonly used technique of moving averages is for purposes of determining the trend of the market as well as finding support and resistance levels.

Trading Commodities with RSI and Momentum Indicators
Momentum indicators are widely used by commodity traders to measure when a market is overbought or oversold. For traders who live by the old adage of buying low and selling high, momentum indicators are often a critical part of their trading arsenal.

Changing Commodity Trading Strategies Can Be Dangerous
One of the pitfalls many commodity traders fall into is the constant changing of trading strategies. They often spend weeks researching a particular trading method and have good evidence that it should work.

Trading Commodities After News Reports
News on commodities can often be a dangerous trap for novice commodity traders. There are major wire services that usually produce an end of day recap on why each commodity market moved up or down for the day. If you are an inexperienced commodity trader it is a good bet that you will poorly interpret the news on the commodities markets.

Scale Trading Commodities
Scale trading uses a simple principle of buying low and selling high. When trading commodities, it is often difficult to figure out when a commodity is trading at a low enough price to buy, but scale trading has some fairly simple guidelines to find good buying levels.

Commodities Trading and Technical Analysis
Technical analysis is often used among commodity traders. It is first important to understand the basics of technical analysis before trading commodities and then you can move on to more advanced technical methods.

Trading Commodity Seasonal Trends
Seasonality often plays a part in determining prices for commodities in regular cycles throughout the year. Normal increases and decreases in supply and demand for particular commodities seem to occur every year in fairly consistent patterns.

Types of Commodity Trading Strategies
Commodity trading strategies are simply the basis for why and when you will buy and sell commodities. You should have some well thought out strategies before you begin trading commodities.

Paper Trading - Learn How To Paper Trade Commodities
Paper trading commodities and futures may be one of the best ways to learn how to trade without putting any money at risk. Paper trading may not be completely realsitic since no money is at risk, but paper trading is is one of the best tools to learn how to trade commodities and futures.

List of Most Current Futures Margin Rates
This is the most recent listing of futures margin rates for trading commodity futures. It should be used as an example, since many futures brokers will have different futures margins and they do change with market conditions.

Hurricane Commodities – Trading Strategies for Commodities in Hurricane Season
The hurricane season brings opportunities to trade commodities every year. The major commodities that are affected by hurricanes are orange juice, natural gas, crude oil, sugar, lumber, corn, soybeans and wheat futures.

Commodity Trading Strategy Beats Buy and Hold for Commodities
Commodity trading has produced superior returns over history compared to a buy and hold strategy for commodities.

Day Trading Futures
What is Day Trading in the Futures Markets? There are advantages and disadvantages to day trading futures. We also list the best markets for day trading futures; including t-notes, soybeans, crude oil, japanese yen and the euro fx.

Small Speculators on the Wrong Side of the Markets
Small speculators in the futures markets typically are less successful traders than the commercial traders.

Follow the Trend in Commodities Trading
Trend Following is a very effective trading strategy in the commodity and futures markets.

Mechanical Approach to Trading
Bruce Babcock discusses why many professional traders use a mechanical approach to trading futures.

Trading The Grains During The Summer Months
Trading corn and soybeans during the summer months can be a tricky process. It is important to watch the weather for excessive heat and excessive rain. The odds normally favor a short-lived rally during the summer for corn and soybeans that can be sold.

Understanding the Commitments Of Traders Report
The Commitments of Traders (COT) report is one of the few tools that help level the playing field for small traders. The COT report is released weekly from the CFTC and it gives the latest number of short and long positions held by commercial traders, large traders and small traders. The report might not appear to be too important on the...

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