The day trading commodity trading strategies that earn you a profit


Day trading commodities, in a nutshell, refers to the practice of buying and selling stocks, currencies, or commodities within a single day to make a profit before the markets close.

Trading in stocks is a little challenging for novices, especially those who don’t know the rules, strategies and the basics of it. The internet has made everything easy from becoming an average individual investor to a game changer.

Day trading can turn into a lucrative career even if you know just the correct tidbits of it. Even the most seasoned investors can hit the hard rock and experience losses at times. However, with professionals at hand, things hardly go wrong. Let’s begin with learning what day trading is and dive further into the ‘basics’ of commodity trading and strategies .


What is Day Trading?

Basically, day trading is a practice of purchasing and selling shares, commodities and currencies within a single trading day. This practice is common in many marketplaces like the foreign exchange (forex) and stock markets. The traders strategize over making smaller price moves that occur during the day on high liquid stocks or currencies. Markets that don’t move as per the expectations or scheduled announcements like corporate earnings, economics statistics etc. The day traders make significant moves that can earn greater benefits for the day.

  • Commodities Day Trading

Trading comes in several different ways. You can either trade in currencies or commodities or both. Commodities trading is when you trade in goods that are essential to one's life, such as, oil, coal, copper, natural gas, oats etc. Simply right? Well, broadly, there are four main categories of commodities you can trade in:

  • Metal
  • Energy
  • Livestock And Meat
  • Agriculture

All these categories include 20 and more commodities that are available today for the traders. So, if you’re a day trader who continuously looks for opportunities to make more money, then there is a little piece of advice that will help you to perfect the art of trading - stick to something you’re already good at, for instance, only commodities. A better focused trading enables you to study and understand the market and make sound and pocket-friendly decisions.


Focus on fewer commodities


When you’re looking for profitable commodities to trade in, first identify a few important characteristics like its liquidity. The commodity should be liquid enough, that is, it’s demand should be high as it will allow you to enter and exit a trade at any time of the day. The second important characteristic is that it should have moderate to high media coverage. Getting followed in the media means acquiring enough news on your feed. Latest news and updates bring you the most insights, helping you to trade better.


Commodity Trading Strategies


Commodity strategy is important when you decide to focus only on commodity day trading. As the trading period is short, well, only one day, you need to get the most out of it, for which following commodity trading strategies is the best.

Some useful commodity strategies that really work are:


Moving average


Moving average is one of the trendiest technical strategies. This method involves looking at the moving averages to find out the market trend. Other than the trend, the trader can also grasp support and resistance levels of the commodity market too.


Understand support and resistance levels


The trend lines and drawing tools help you to map an asset’s support and resistance levels. The support levels indicate the downward trend prices. Whereas, the resistance levels indicate an upside price level. Both these points are important to understand market entry and exit points.


Avoid extreme volatility


Avoiding extreme volatility does create opportunities, but has higher chances of the market moving against you. As commodities are volatile assets, thus, you may want to get slower when there are potential geo-political events, natural disasters, or tariff disputes.


In a nutshell, it is important for a day trader to move analytically, validating and testing all the commodity strategies. It is just one of the best and reliable ways to be on top of market trading opportunities. So, if you’re interested in gaining from commodities trading training , start your trading journey with Commodities University and discover day trading secrets. Even if you haven’t traded before Commodities University is the platform to begin with.


 

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