Thursday, 29 November 2012

Commodity MCX NCDEX Market is what?

You can feel like investing in commodities but do you really think that it can bring good profits to you. If you haven't proper knowledge of trading in commodity, you would never be able to get such profit form the commodity market. If you are sure about commodity trading strategies and techniques that you have a good knowledge or information of it, you can try to invest your money in commodity market like as Gold, silver, crude oil, and many other commodity goods, which is transacted in the commodity exchanges like MCX and NCDEX.

As we discuss earlier that, if a trader don’t have good knowledge and right information of commodity market and if he can’t be able to use such techniques and strategies then he can never make good profit, and may go in lose.

In order to be successful trader, one must approach trading as a full or part-time business - not as a hobby or a job. As a hobby, where no real commitment to learning is made, trading can be very expensive. Trading is a business which incurs expenses, losses, taxes, uncertainty, stress and risk. As a trader, you are essentially a small business owner, and must do your research and strategize to maximize your business's potential.

The two major commodity exchanges in India:

MCX (Multi Commodity Exchange of India Limited): MCX is like the stock exchange but it is a little different here as you are trading in commodities which consist of both physical and derivatives trading like precious metals, energy products and agricultural products too. But In MCX, Precious metals and energy products like as fold, silver, crude oil, zinc, copper, and aluminum etc are traded in high volume for trading and agricultural product is traded in low volume.

NCDEX (National Commodity & Derivatives Exchange Limited): 
NCDEX is also trading in commodities but maximum volume on Agriculture products like Jeera, cardamom, Chana, guar seed, guar gum etc. in NCDEX also trading at precious metals and energy products too.

Commodity trading is like as stocks market trading and it also use strategies like stocks trading mostly but somewhere it use some different policies like seasonal trend analysis. You have to follow market trend, market volatility, buy low and sell high, technical analysis, conceptual analysis, news report watching and many other styles and strategies.

If you want to trade commodity currencies, the best way to use commodity prices in your trading is to always keep one eye on movements in the oil or gold market and the other eye on the currency market to watch how quickly it responds. Due to the slightly delayed impact of these movements on the currency market, there is generally an opportunity to overlay a broader movement that is happening in the commodity market to that of the currency market. Bottom line: It never hurts to be more informed about commodity prices and how they drive currency movements.

An ineffective trading plan shows much greater losses than anticipated in historical testing. Markets may have changed, volatility within a certain trading instrument may have lessened, or the trading plan simply is not performing as well as expected. One will benefit by remaining unemotional and businesslike. It might be time to reevaluate the trading plan and make a few changes, or to start over with a new trading plan. An unsuccessful trading plan is a problem that needs to be solved. It is not necessarily the end of the trading business.

Trading is a competitive business, and one can assume the person sitting on the other side of a trade is taking full advantage of technology. Getting market updates with smart phones allows us to monitor trades virtually anywhere. Even technology that today we take for granted, like high-speed internet connections, can greatly increase Commodity trading performance and provide Free Commodity tips for gaining profit. 



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