Should I trade Commodities?

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halfstep

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Hi, I am a FX trader, recently picked up Jim Rogers book "Hot Commodities", who claims that another bull market in commodity is upon us.

I am contemplating on trading commodities, yet i have ABSOLUETELY no clue when it comes to commodities, is there any broker you guys recommend? what is the minimum capital i need to invest?

do you guys use technical or more fundamental?

thanks
 
Go with IB.
Least slippage of anyone I have come across. Capital requirements clearly depend on the commodity.
Wheat is a cheapy you may wanna look at, as are beans.
Its all tech if you are day trading. Bull mkt shouldnt affect you. Go long when you have to, short when you have to. Do you really have a fx trading background?
I like to Trade On Auto.
 
i have been trading FX for about 5 months now, still a newbie, but i understand the basic idea of FX. don't know if the same applies to Commodities. with FX, i am mainly a tech trader, not much of a day trader, my trades are usually swinging.
 
ohh I see. Has that been working for you?
I occasionally trade currencies but I have a method I use to capture short term movements.
I dont like to have my capital in the mkt for more than an hour or so.
Mkts are mkts - each with its own subtlety to be sure. Are you trading on the basis of indicators?
 
Studog said:
ohh I see. Has that been working for you?
I occasionally trade currencies but I have a method I use to capture short term movements.
I dont like to have my capital in the mkt for more than an hour or so.
Mkts are mkts - each with its own subtlety to be sure. Are you trading on the basis of indicators?
Click to expand...

i trade with elliott wave and price action. along with one or 2 moving average and momentum indicator. its all you need.
 
Just asking squire. I dont use them at all. But Im just in for a short period of time.
I dont subscribe to all that idiot wave theory stuff, but its always useful to look at the latest flavour indicator to see what all the bunnies are thinking I suppose.
At least it was when I worked as a retail advisor.
What made you give up on fx? Or are you just looking to spread the wings?
 
Studog said:
Just asking squire. I dont use them at all. But Im just in for a short period of time.
I dont subscribe to all that idiot wave theory stuff, but its always useful to look at the latest flavour indicator to see what all the bunnies are thinking I suppose.
At least it was when I worked as a retail advisor.
What made you give up on fx? Or are you just looking to spread the wings?
Click to expand...

haha, nah i am not giving up FX at all. its great market, and i really love it. the only reason i am expanding into the commodities is because i am becoming profitable in FX. don't plan to quit any time soon either, i would love to trade for a living eventually, and FX will be my bread and butter.
 
I like http://www.pfgbest.com much better, I trade FX too and I had trouble getting along with IB's platform.
Plus if you want to continue to trade FX, PFG have 100:1 leverage and IB do not and if you are used to metatrader they also have it which most DM brokers do not.

Technicals work well on commodities but be aware of pit open and close times and be careful outside of those times, its not a 24hr market like FX and it will gap.
 
elitejets said:
I like http://www.pfgbest.com much better, I trade FX too and I had trouble getting along with IB's platform.
Plus if you want to continue to trade FX, PFG have 100:1 leverage and IB do not and if you are used to metatrader they also have it which most DM brokers do not.

Technicals work well on commodities but be aware of pit open and close times and be careful outside of those times, its not a 24hr market like FX and it will gap.
Click to expand...

why be carefull the pits are meaningless..apparently ;)
 
ok guys great replies, how much money is needed in order to trade, i want to get my feet wet, and trade coffe and soybeans, small timers. is 100$ enough?
 
halfstep said:
Hi, I am a FX trader, recently picked up Jim Rogers book "Hot Commodities", who claims that another bull market in commodity is upon us.

I am contemplating on trading commodities, yet i have ABSOLUETELY no clue when it comes to commodities, is there any broker you guys recommend? what is the minimum capital i need to invest?

do you guys use technical or more fundamental?

thanks
Click to expand...


No reason why not to trade commodities if you are a technical trader. As long as there is volatility, preferably in the form of easily recognisable trends that suck 'passengers' in, and you can go short as well as long, there is no market on earth you can't trade. I would just be wary of the experts who predict a bull market in this or a bear market in that - its all so much noise for the technical trader, just trade what you see, not what others say they think. All due respect to Rogers, but don't let his opinions bias you towards long-side positions.
 
tomorton said:
No reason why not to trade commodities if you are a technical trader. As long as there is volatility, preferably in the form of easily recognisable trends that suck 'passengers' in, and you can go short as well as long, there is no market on earth you can't trade. I would just be wary of the experts who predict a bull market in this or a bear market in that - its all so much noise for the technical trader, just trade what you see, not what others say they think. All due respect to Rogers, but don't let his opinions bias you towards long-side positions.
Click to expand...

very true.
 
halfstep said:
ok guys great replies, how much money is needed in order to trade, i want to get my feet wet, and trade coffe and soybeans, small timers. is 100$ enough?
Click to expand...

I would pass on coffee and maybe look for something else, its a bit of an insiders market.
If you want to stick to the ags cotton, cocoa, wheat, corn or maybe sugar. They are all quite correlated though.
Maybe pick one and then something else from the energy, metals or meats sector. Some are very expensive to trade so watch out (copper, silver, natgas).

$100 is not enough, try this on demo and save up a bigger stake.
 
halfstep said:
i trade with elliott wave and price action. along with one or 2 moving average and momentum indicator. its all you need.
Click to expand...

I know a very good trader who has a similar trading style as you, and he made a very successful transition over from Fx to trading Oil (CL). He had traded Fx for quite a long time (8 years) and wanted a change - He is not looking back in a hurry.

:)
 
Elliot is great as is any theory when in "Fashion" as it allows you to trade around the goons that follow it. I just love when another old theory becomes popular again. It rings the bell for the stampede of sheep.
 
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