10 Key Points To Consider While Commodity Intraday Trading
If you want to grow your investment portfolio and quickly make money, you must be interested in commodity intraday trading. Investing in commodities is considered the best choice because of the price movements in the short term.
With lots of investors participating in commodity exchange, you must be wondering if it’s the right choice for you or not.
Well, the asset class attracts many and returns are also impressive. However, making key decisions between 9 am to 11:30 pm is not everyone’s cup of tea, right? Making crucial decisions about commodity selection while at the same time focusing on global news can make you feel overwhelmed. To invest like a pro, you can refer to the key points discussed in this article.
How to prepare yourself for investing in real time commodity?
Rules of trading
Also known as day trading, the basic concept of intraday trading is to buy or sell stocks on the same day. For example, the investor has to buy stocks at a certain period on the same day when he has to sell the stocks to make a profit. Although there is no set limit for the amount to be invested in intraday trading; if you are a beginner start with a lower amount. Always invest with an amount that you are not afraid to lose. Further, according to the new SEBI rules you can only carry forward the profits made into trading after two days. So keep that figure in mind and start your investing journey.
Trading platforms
To leverage benefits from the price fluctuations of commodities, one can invest in MCX (Multi Commodity Exchange) and NCDEX (National Commodity Exchange).
Method of trading
Some believe breakout trading is the right method, others focus on momentum or reversal trading methods. Furthermore, there are moving average and gap and go trading methods to confuse you more. Within a range of 30 minutes to 3 hours, some beginners like to choose the breakout trading strategy. These all may seem nothing but jargons to a beginner. To get an in-depth understanding of all these methods, connecting with an investment advisor is a wise decision.
Commodity selection
Before you plan on reaping huge benefits from daily price fluctuations, you need to learn about the price changing patterns. However, experts recommend that the safest commodity choices for intraday trading in 2022 are crude oil, natural gas, copper and gold. Ideally, one should focus only on a few commodities to make crucial decisions safely.
Asset classes and their relations
Did you know that gold prices are linked to the value of the US Dollar? Similarly, there are many commodities in different asset classes that might affect the stock price of each other. This knowledge would help you a lot to make sound investments.
Data analysis capability for trading decisions
Certain commodities rely on climate factors like crops and yields, whereas certain commodities move according to the changes in the macro environment. If someone wants to master the science of intraday trading, they need to polish their data analysis skills as well.
Tools for intraday trading
There are a variety of training platforms available these days. You can pick one of them to hone your skills in commodity trading. Furthermore, if you want to do the technical analysis with the available market data, then there are also certain options available with the fast executing software. Moreover, if someone needs to test their trading test, there are certain intuitive tools available that one can use to get a unique advantage and test the decision before actually making them.
Assessment of global news
As we all know, the stock market recently experienced the biggest drops during the COVID-19 pandemic or conditions that led to the world war. This gives you a hint of how the market fluctuates when something big happens in the world. It won’t be feasible to get glued to the television to consume all of the global news, thus most investors refer to commodity trading tips telegram channels or other sources to get access to the synopsis of what’s happening in the world.
Sources for intraday trading tips
If you don’t want to rely on the unverified news flash on social media platforms, you can refer to a more trusted SEBI registered commodity tips provider. These providers have a team of technical analysts who have mastered the art of reading charts. They can do the research on your behalf as they are backed with the latest and most innovative data analysis software. Relying on one of the trading tips providers is a wise decision to get buy or sell recommendations without doing the legwork.
Successful strategies for commodity trading
Now that you are well aware of the rules and regulations have the latest news and analysis at your hand. The next step is to make the investment decision based on a trading strategy. Experts recommend that for intraday commodity trading, one has to be mindful of the timing. Mostly, profits are anticipated between noon and 1 pm. Before you begin have the stop-loss strategy in mind. It is an advanced order that helps you from facing losses when the conditions are unfavorable.
You decide on a limit and make profits or face losses only within the stop-loss limit. It is also recommended by the experts that one needs to spend enough time understanding what’s happening in the market. Deciding in hastiness, won’t work. Alternatively, one needs to closely monitor the market movements.
Final words For Intraday Commodity Trading
The rule to square off the position regardless of profit or loss is slightly a complicated process for amateurs. However, the daily price fluctuations of commodities offer huge investment opportunities in intraday trading. Rather than wasting energy and efforts on understanding the commodity market, a smarter option to get skilled in intraday trading is to pick the best commodity trading tips provider in India. With the help of expert tips, both amateurs and professionals are gaining huge returns in intraday trading. But make sure to search for a SEBI registered tip provider, so that you can be assured of their technical expertise and industry knowledge.
To know about how to avoid loss in Commodity Trading Click here.