Historically, product trading has delivered the biggest fortunes worldwide. This originated centuries ago, even before the stock market segments came into existence, albeit traded then in a different manner, compared to seen today on electronic deals. I have often offered that " If trading in the speculative markets, then Stocks & Equities is for boys but Commodities &Forex is for men" (No gender bias intended). Wealth creation is not a matter of chance. It is a process that needs sharp analysis & a lot of work time. Plan your play and then play your plan. Happy investing!
The similarity in Stocks & Commodities starts & ends at the point that they are both speculative trade markets, but there are a lot many dissimilarities in both these markets. Unlike the stock market segments where even a highly valued stock could eventually see all it's commercial-value being eroded due to several reasons, the beliefs of commodities may see corrections on a big source but eventually is only going to increase again with time, as the inherent imbalance in the necessity and supply ratio would always favor demand more than supply due to many influencing factors like growing populations, rising financial systems and better lifestyles to name a few. All adverse scenarios like geo-political tensions, wars, climatic imbalances, catastrophes and other man-made disasters, etc. which pull the stock markets down generally push the commodities up (especially Agro-Commodities & safe haven instruments like Gold), basically due to the differentiating factor that these commodities generally are also regular needs to normal life and not simply investment tools. Most Commodities are exchanged globally & the purchase price rigging in these is difficult unlike, as seen in a lot of value instruments where manipulation is a lot easier & occurrences of traders getting duped are rampant.
Huge wealth creation is possible through Commodity Trading & Investments if done the right way & with a lot of rigid discipline. But if done the wrong way, which is generally the most followed path, you will see massive losses also. You can start off equity trading or investment with smaller sums pounds, but would require further pockets to be able to do some moderate trading in the Product Exchanges & also to sustain the "Mark to Market" volatility in the Commodity Markets. The increases & losses in both also become proportionately big or small eventually. I would now like to highlight some basic Do's & Don'ts for the most frequently seen habits & maybe unknowingly fully commited mistakes, that we have observed in most traders & had to address to a number of times as a Market Analyst & a Commodity Market Business Advisor.
1] Perform not trade with hesitance, half heartedly or in over confidence. You may bear small but repeated losses if you are frightened of the markets or heavier ones if you are overtly brave and foolhardy.
2] Become patient once your trade opportunities are transferring the right expected direction to draw out maximum gains and ensure the gains by improvising the stop-loss level, over and over again. Do not be pessimistic here otherwise you may book gains pre-maturely & may later repent on exiting early. This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at small reversals in stress, which in turn would erode earlier small gains & also build loss. A possibility whether you're right or wrong that's important, but how much money is made when you're right and how much you lose when you're wrong & that makes all the difference between Champions & Losers.
3] Do not be over optimistic when trades have hit the suggested stop-loss levels and be sure to leave there. You may miss better and multiple opportunities on being stuck in deals gone wrong leading to higher and higher loss daily.
4] Carry out not discuss your open positions with one and all. This will lead you nowhere and mistake you more, as all would air their own views on the same (whether knowledgeable or not) and many a times, would make your trade decisions appear as foolishly and hastily used. If only you should have consulted them earlier...
5] Do not create a tendency of being a Bull or a Keep in these markets. There is merely one side to the markets and that is nor the Bull side nor the Bear side - But ONLY the Proper Side at the Right Time. Trend is California king, so follow it all the time.To become more data click here Crude Oil.
6] Realize that you are in a bad situation and exit fast when you need to pray for relief at each fall or rise in a trade which is leading you further in a strong pit towards heavier deficits.
7] Follow SIMPLY one Analyst's or Technological Advisor's guideline each time, as more guidelines will again create a lot of confusion. You can choose for or look away for an alternate assistance when the earlier guide proves to be less productive or loss making, but not simultaneously.
8] Be honest to yourself as hoping or praying for something different, than the actual reality or situation is practically nothing less than fooling your own self.
9] Right now there is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight, as assured by many to win a possible customer. YES, there are significant gains and high results for a disciplined dealer and may return exactly the opposite, if not worse, for the non-disciplined. Tend not to enter this industry market under any confusion of obtaining to be a Billionaire overnight. It will never happen. In fact everything you now own may also be lost.
10] DO NOT LEND or trade with money that are not your own or pump in more funds by borrowing to hold on to damage making trades. Trade only with own funds that are spare-able and be prepared mentally in dropping even that in totality, in the worst case.To get additional facts click the link Nifty.
The similarity in Stocks & Commodities starts & ends at the point that they are both speculative trade markets, but there are a lot many dissimilarities in both these markets. Unlike the stock market segments where even a highly valued stock could eventually see all it's commercial-value being eroded due to several reasons, the beliefs of commodities may see corrections on a big source but eventually is only going to increase again with time, as the inherent imbalance in the necessity and supply ratio would always favor demand more than supply due to many influencing factors like growing populations, rising financial systems and better lifestyles to name a few. All adverse scenarios like geo-political tensions, wars, climatic imbalances, catastrophes and other man-made disasters, etc. which pull the stock markets down generally push the commodities up (especially Agro-Commodities & safe haven instruments like Gold), basically due to the differentiating factor that these commodities generally are also regular needs to normal life and not simply investment tools. Most Commodities are exchanged globally & the purchase price rigging in these is difficult unlike, as seen in a lot of value instruments where manipulation is a lot easier & occurrences of traders getting duped are rampant.
Huge wealth creation is possible through Commodity Trading & Investments if done the right way & with a lot of rigid discipline. But if done the wrong way, which is generally the most followed path, you will see massive losses also. You can start off equity trading or investment with smaller sums pounds, but would require further pockets to be able to do some moderate trading in the Product Exchanges & also to sustain the "Mark to Market" volatility in the Commodity Markets. The increases & losses in both also become proportionately big or small eventually. I would now like to highlight some basic Do's & Don'ts for the most frequently seen habits & maybe unknowingly fully commited mistakes, that we have observed in most traders & had to address to a number of times as a Market Analyst & a Commodity Market Business Advisor.
1] Perform not trade with hesitance, half heartedly or in over confidence. You may bear small but repeated losses if you are frightened of the markets or heavier ones if you are overtly brave and foolhardy.
2] Become patient once your trade opportunities are transferring the right expected direction to draw out maximum gains and ensure the gains by improvising the stop-loss level, over and over again. Do not be pessimistic here otherwise you may book gains pre-maturely & may later repent on exiting early. This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at small reversals in stress, which in turn would erode earlier small gains & also build loss. A possibility whether you're right or wrong that's important, but how much money is made when you're right and how much you lose when you're wrong & that makes all the difference between Champions & Losers.
3] Do not be over optimistic when trades have hit the suggested stop-loss levels and be sure to leave there. You may miss better and multiple opportunities on being stuck in deals gone wrong leading to higher and higher loss daily.
4] Carry out not discuss your open positions with one and all. This will lead you nowhere and mistake you more, as all would air their own views on the same (whether knowledgeable or not) and many a times, would make your trade decisions appear as foolishly and hastily used. If only you should have consulted them earlier...
5] Do not create a tendency of being a Bull or a Keep in these markets. There is merely one side to the markets and that is nor the Bull side nor the Bear side - But ONLY the Proper Side at the Right Time. Trend is California king, so follow it all the time.To become more data click here Crude Oil.
6] Realize that you are in a bad situation and exit fast when you need to pray for relief at each fall or rise in a trade which is leading you further in a strong pit towards heavier deficits.
7] Follow SIMPLY one Analyst's or Technological Advisor's guideline each time, as more guidelines will again create a lot of confusion. You can choose for or look away for an alternate assistance when the earlier guide proves to be less productive or loss making, but not simultaneously.
8] Be honest to yourself as hoping or praying for something different, than the actual reality or situation is practically nothing less than fooling your own self.
9] Right now there is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight, as assured by many to win a possible customer. YES, there are significant gains and high results for a disciplined dealer and may return exactly the opposite, if not worse, for the non-disciplined. Tend not to enter this industry market under any confusion of obtaining to be a Billionaire overnight. It will never happen. In fact everything you now own may also be lost.
10] DO NOT LEND or trade with money that are not your own or pump in more funds by borrowing to hold on to damage making trades. Trade only with own funds that are spare-able and be prepared mentally in dropping even that in totality, in the worst case.To get additional facts click the link Nifty.
No comments:
Post a Comment