commodity trading
Perfect System for Commodity Trading
To rescue US economy, FOMC has cut interest rate from 6% to 0.25%, not much ammunition left. Japan which is the world’s 2nd biggest economy has suffered due to its strong yen. Even strong and stable Toyota has reported loss. China and Asia which have relied on US for most of their exports have started to show signs of weakness.
I say with confidence that 2009 will be a bad year for businesses, employees and global economy. We will see more cost cutting by firm in the form of retrenchments.
When people lose their jobs, they will spend conservatively. Some people may even have to sell stocks and property in order to raise cash for their daily expenses. Do you believe that in this kind of environment stock investments will do well?
Have you learned anything in 2009? If you have not, then learn that stock investment does not do well in all economy environment.
I think the current business cycle is moving downwards from the peak and we are still far from the bottom. I perceived that stock market is going to test its low and move down even much more in 2009.
I have since switched from stock investment to forex and commodity trading at the start of 2008. Here are some of my commodity trades.
14 trades were executed: 10 wins, 3 losses, 1 breakeven
Here are the trades on commodities from 1 Dec to 24 Dec:
1. On 23 Dec I closed my position at 10.41, profit is 28 ticks (US$280).
Original trade:
Shorted 1000 spot silver at 10.69
Stop level at 10.90
Target level at 10.08
2. On 23 Dec I closed my position at 39.33, profit is 33 ticks (US$66)
Original trade:
Shorted 2 lot supermini oil at 39.66
Stop level at 40.50
Target level at 38.72
3. On 19 Dec target level reached for silver. Close position at 11.12, 14 ticks profit (US$140).
Original trade:
Shorted 1000 spot silver at 10.91
Stop level at 11.12
Target level at 11.12
4. On 19 Dec I close my position at 10.97, profit is 10 ticks, US$99.65.
Original trade:
Shorted 1000 spot silver at 11.07
Stop level at 11.30
Target level at 10.87
5. On 17 Dec I close spot silver position at 11.44, profit is 25 ticks, US$250.
Original trade:
Bought 1000 spot silver at 11.19
Stop level at 10.79
Target level at 11.61
6. On 17 Dec target reached for silver. Profit is 49 ticks.
Original trade details:
Bought 1000 spot silver at 10.68
Stop level at 10.40
Target level at 11.17
Closed at 11.17 (Profit is 49 ticks, US$490)
7. On 16 Dec profit stop at 45.81 is triggered. Profit is 40 pips.
Original trade:
Bought 1 lot of supermini Oil at 45.41
Stop level at 43.70
Target level at 47.00
8. On 16 Dec oil trade triggered stop at 44.00. Loss is US$74.
Original trade:
I bought 1 lot of supermini Oil again at 45.41
Stop level at 43.70
Target level at 47.00
9. On 16 Dec oil trade stop triggered at breakeven
Original trade:
Open Long: 1 lot supermini Oil @ 44.67
Stop level: 44.67 (Shifted to breakeven)
Target level: 46.92
10. On 12 Dec gold trade triggered stop.
Original trade:
Open Long: 100 Spot Gold at 833.43
Stop level at 819.00
Target level at 846.38
11. On 10 Dec target level reached for oil
Original trade:
Open short: 1 Supermini Oil @ 44.25
Stop level: 45.00Target level: 43.13
Close at 43.13, profit is 112 ticks (US$112)
12. On 9 Dec cut loss on oil trade
Original trade:
Open Long: 1 supermini Oil @ 44.27
Stop level: 42.00
Target level: 46.80
Closed: 43.42 (Loss is US$32.00)
13. On 8 Dec took profit on gold
Original trade:
Open Long: 100 Spot Gold @ 770.25
Stop level: 739
Target level: 799.50Closed: 774.38 (Profit is US$413.00)
14. On 5 Dec target level reached for oil
Original trade:
Open Short: 1 lot Supermini Oil @ 45.56
Stop level: 48.10Target level: 42.83
Closed: 42.83 (Profit is US$273)
If you are interested to generate alternative income by tapping on BL TS system, send an email to me at metal.commodity@gmail.com.
To open a commodity trading account, click here to open.
Risk Disclosure:
Commodity trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to participate in the futures trading markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation to invest nor an offer to Buy/Sell futures or options. The past performance of any trading system or methodology is not necessarily indicative of future results.
About the Author
Currently I’m working as a trader in a hedge fund. Previously I was working as a commodity specialist in a bank.
Aspires to be a fund manager. In 2007, I had participated in a 1 year stock-pick competition organized by Zacks.com in America. At the end of the competition, I was ranked 407th out of 27,700 participants, hence this makes me top 1.47% of the competition. I had achieved 32.67% return on the competition portfolio, for the same period S&P was only up 6.99%, and Dow Jones was only up 4.16%, hence I had outperformed the broad market by a wide margin.
All the trades can be found in this website: http://www.commoditiestradingpro.com/
What is commodity trading?
A company is dealing with properties and lands. Other business are commodity trading . what is that?
In this sense a commodity is a physical usable, good that can be traded and moved. They are often time viewed as “raw materials” (but not always)
Examples of commodities are oil, natural gas, gold, wheat, etc.
If companies are trading in commodities, they are buying and selling the commodities to earn a profit or secure a price, as well as unload or obtain the actual item.
For example, a wheat farmer may sell his grain on the commodities market in order to Earn Money for his product. While at the same time a very large bakery may need to buy wheat in order to make bread.
The bakery will go to the commodities market and buy certain quantities of bread based on its current trading price.
These are the basic events that involve trading commodities in order to transact the actual good needed.
It can get a lot more complicate when companies try to lock in prices. It gets even more complicatedwhen companies are using the commodities market as an investment, hedging or speculating tool (and not actually trying to obtain or sell goods)
Commodity Trading – Part 1: History
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