Diapositiva 1

By www.CandleStickForums.com Tracking Commodity Profits

www.CandleStickForums.com Tracking commodity profits can be as important to traders as tracking commodity prices.

www.CandleStickForums.com There are a number of ways to profit from the price swings in various commodities.

www.CandleStickForums.com One can buy stock in a company that produces a commodity.

www.CandleStickForums.com Likewise one can buy or sell stock in companies that process commodities.

www.CandleStickForums.com There are exchange traded funds that track commodities.

www.CandleStickForums.com In some cases, such as precious metals, the trader has the choice of buying gold futures, buying mining stock, or buying gold.

www.CandleStickForums.com The point of tracking commodity profits is to understand how successful a given commodity market is compared to other means of investing in the commodity over time.

www.CandleStickForums.com Tracking profits is an audit of results as opposed to the process testing involved in back testing trading results.

www.CandleStickForums.com To learn and effectively use the technical analysis tools for trading commodities, Commodity and Futures Training is useful.

www.CandleStickForums.com A firm knowledge of Candlestick charting techniques, for example, will help gather profits.

www.CandleStickForums.com Tracking commodity profits leads to an overview of trading success and helps traders direct their efforts into the most profitable trading arenas.

www.CandleStickForums.com Tracking commodity profits will give the trader a clear picture of return on investment in the commodities markets.

www.CandleStickForums.com The trader will always want to find the best use of investment capital.

www.CandleStickForums.com He or she will also want to keep track of time spent in doing the research necessary for commodity trading.

www.CandleStickForums.com By tracking profits and time spent in a trading a given commodity the trader will be able to compare commodity futures trading and commodity options trading as means of making a profit on commodity price movements.

www.CandleStickForums.com Of course, in order to make profits the trader still needs to track commodity prices.

www.CandleStickForums.com The use of an overview of profits to guide future activity is just another facet of keeping track of the market, which traders have been doing for centuries.

www.CandleStickForums.com Whether it was tulip bulb traders in Holland or rice traders in ancient Japan the old traders studiously keep the records that lead to todays systems of technical analysis.

www.CandleStickForums.com The use of Candlestick analysis, Candlestick pattern formations, and Candlestick trading tactics still lead to profits in trading commodities.

www.CandleStickForums.com Tracking commodity profits may seem silly when a trader is making money but when profits disappear he or she will look to see where the problem lies.

www.CandleStickForums.com Just as the trader may develop habits in the use of specific pattern formations he or she may become accustomed to trading one or two specific commodities to the exclusion of others.

www.CandleStickForums.com Looking at how successfully one trades oil futures versus corn futures, for example, will help the trader decide where he or she should be spending time trading.

www.CandleStickForums.com It may also give a hint as where the trader needs to do more homework and fundamental analysis in order to improve his or her insight into the commodity in question.

www.CandleStickForums.com The addition of a profit by trading category to a spreadsheet can be an eye opener in the manner of recognizing that all of those trees, as in repeated unprofitable trades, are in fact a forest.