27/12/2017 at 10:35 #251074
Almost all the retail traders trade with different types of currency pairs. There are many currencies in Forex and if you do not know what to trade with, you will lose your money. Most traders like to trade with the major currency pairs. These major currency pairs allow the traders to trade the market with full functions. They can take help from the internets as these currency pairs are the most used in Forex, they can also take help from the professional if they need as the professional also trades with these major currency pairs. When you are trading with major currency pairs, all of these traders are important and many currency pairs also have correlation win them. If the price of one currency pair increases, there are chances that the price of other currency pairs will fall.
All these are possible only when you are trading in Forex with your money with major currency pairs. Traders who do not trade with the major currency pairs trade with the minor currency pairs. There are also traders who do not trade the market with major and minor currency pairs. They trade the market with commodities like oil and gold. This article will tell you why commodity trading is risky for your career. When there are chances that you will make a lot of money if you can be successful in commodity trading, it is not good in the long run. This market is risky and most traders cannot understand even with their knowledge of trading the market.
When you consider the commodity market for making a profit you need to understand that this market is more sensitive. A simple political news release can significantly change the values of the commodity in the global market. For this very reason, many new traders in the United Kingdom only trade the major pairs. However, if you still want to learn commodity trading then you should use the demo trading account. In the demo account, you can trade as long as you want. So consider this as a practice field and try to develop a stable trading system which will help you to make profit consistently.
Learn the fundamental analysis
As a commodity trader, it’s very vital that you learn fundamental analysis very precisely. If you want to trade this market based on technical analysis only then chances are very high that you will have to lose a big amount of money. Understanding the nature of commodity market requires an extreme level of trading knowledge. Even the most experienced traders at Saxo often have face series of losing trades in the commodity market. But as long as you follow strict trading discipline everything will be perfectly fine. And make sure that you always trade the higher time frame in commodity trading since it is one of the easiest ways to save your trading capital.
This market is very unstable
Volatility is bad for your trading. Whenever tardier found a market is going volatile, they stop their trading and wait for the volatilely to get over. When you are trading in a commodity market, you will find a new meaning of volatility. You will think your market volatility with currency pair was better than the volatility of commodity market. This market is very unstable and you will not know if you have made profits in this market. The prices of the gold and oil are changing every day. If you have placed trades and the prices changes, you will lose your investment. Even the most professional traders also cannot understand this volatile market. If you think you can trade in commodity markets, you should trade in your demo accounts. It will make you realize how much unstable this commodity market is. Traders with money do not trade in commodity market because of the risks of losing your money. If you want to trade with commodities, know the risks of these markets.
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