Commodity Trading for beginners
Commodity Trading for beginners and how beginners make good returns, here in this topic we discuss how new traders or investors earn good money from the commodity market. The commodity markets always provide a wide range of earning sources from commodities, but due to lack of knowledge and beginning level in the commodity market, most beginners lose their hard earn money and our from the commodity market.
Below you can see the commodity market and their trading pattern.
So now the question is how the commodity beginners start their trading and earn a regular income from this market, so first of all beginners require a trading account in the commodity market. In the Indian mcx market, there are too many broking companies who open accounts. The minimum time required to open a commodity trading account is 24 hours. Here below I add some most important broking firm account opening links you all can open your trading account in a 24 hour time period.
Zerodha broking firm account opening link.
Alice blue account opening link.
Here in this blog, I will share with you one of the most accurate trading strategies for beginners for getting continuous results.
The strategy is very simple when we trade in the commodity market. First of all, we need to start with a very small amount, usually 5000-10000. In this investment amount, we trade everyday commodities like silver micro or gold petal. We also use cover order or bracket order and trade in silver mini or gold mini.
|SILVER MINI INTRADAY CANDLE CHART|
Here below you can see the gold mini intraday chart.
|GOLD MINI INTRADAY CANDLE CHART|
Use capital acquire three basic rules to become a good trader as a beginner.
Money management is always our first rule while we trade in the intraday market either equity market or commodity market. Money management plays a very important role while we trade in the mcx market.
Always take risks of your total capital between 1% to 0.5% and also the reward will be double to your risk. This only factor improves your trading skill and saves your capital in intraday trading.
Rule no 2
In MCX day trading, always use 1% target and 0.5% stop-loss; this intraday trading ratio not only gives you profit, but it also saves your capital from the huge risk of capital that you invest for daily trading.
Rule no 3
It is important to make good trading decisions when we trade in the intraday market, for good trading decisions use technical candle charts with some technical indicators like moving average macd indicators rsi indicator or super trend indicator or most widely used vwap indicator.
Rule no 4.
Never forget all the above three basic rules for day trading as beginners.
How to invest in the commodity market
In the Indian commodity market, more than 100 plus commodities traded in futures contracts. We can simply buy or sell commodities for a specific time period like 1 month to 3 months in future contracts of the commodity market.
There are so many advantages to investing money in commodities markets.
1.the commodity futures market is very high liquidity and high volume contracts.
2.the return ratio is also very high compared to other investment plans.
3.commdity market exchange some margin limits to purchase the commodity.
4.in commodity market has the facility to buy or sell commodities and hold for specific time periods usually one month to three months.
Disadvantages of commodity futures trading.
1.the risk associated in the future market is very high.
2.for beginners, it is very challenging to invest money in the commodities market.
3.international commodity market risk is also very high while we invest in commodities.
how to select a good commodity broker in India
Selecting a good broker in India is also a challenging part. there are too many things when we select a commodity broker. the first one is the trust and credibility of the broker. and the second most important thing is the brokerage charges and extra charges like AMC charges etc.
we should also keep in mind while we selecting a good broker the customer support and guidance when investor or trader at beginning of commodity market trading some time he or she loses their investment due to lack of knowledge of trading and trading operation like order placement and buy-sell position entry or exit time.
the commodity available for trading in MCX India.
Bullions- Gold, Silver.
Metals-zink, lead ,aluminium ,copper ,nikal .
Energy- crude oil, natural gas.
Agriculture- wheat, corn, Cummins seeds, soybean.
Commodity ETF stands with commodity equity traded funds. some commodity is also traded in the equity market in the name of equity traded funds. in this type of funds investor or trader directly purchases the small unit of commodity and holds for a long period there is no limit to hold your position.
The most popular commodity ETF is Gold ETF and we can invest money directly in gold ETF. the risk associated in gold ETF is very low and return also very low. the capital security of investment is very high on investment of gold ETF.
Available commodity exchange in India
1.Multicommodity exchange in India
2.national commodity and derivative exchange
3.indian commodity exchange
4.ace derivative and commodity exchange.
5.universal commodity exchange
6.national multi-commodity exchange
Commodity price watch and updates.
to watch live price and commodity market-related news and article, prefer the Indian commodity exchange website the name of the website is MCX INDIA and the URL of this website is www.mcxindia.com.
Regulated body of the commodity market
the commodity derivative market regulation department (CDMRD) is controlled and regulates the commodity market day to day operations in India. the Sebi completely regulate the commodity market in India and improve the commodity trading and trust related to commodity trading from time to time.
The commodity trading hours
The commodity trade timing is morning 9.00 am to 11.30 pm/ 11.55 pm. the commodity market open for trading every Monday to Friday.