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Trade Commodities

To learn to effectively trade commodities a trader will typically start with a course such as Commodity and Futures Training. By doing so, traders become grounded in the fundamentals of commodity trading. They also benefit from the insights of experienced commodities traders. Before a trader begins to trade commodity futures live he or she will typically use programs and data included in online trading software to trade in simulation. This sort of practice trading is, obviously, a much less expensive means of learning from mistakes than by trading live from the beginning. In order to successfully trade commodities the trader will learn to do both technical analysis of commodity prices and fundamental analysis of commodity supply and demand. Learning the fundamentals of a commodity will give the trader a general sense of trading range and general possibilities. Learning and becoming skilled at technical analysis tools such as Candlestick chart analysis will allow the trader to be able to accurately anticipate commodity price movement and trade commodities profitably.

Training to trade commodities is not limited one beginning class. Many traders sign up for an online trading course from time to time in order to maintain a sense of perspective in commodities trading and by networking with other traders.

In successful commodities trading practice never stops. Many experienced traders engage in simulation trading on a recurrent basis. Especially if a trader is interested in trying a new strategy, he or she can use years of price data on the entire range of commodities in trading software to test a theory. To a large degree it is a performance art to trade commodities. The trader may have all of the knowledge and skill needed to trade. However, he or she needs to be able to put that skill to use in a real setting. Practice makes perfect in the old saying. Practice makes profit in the commodities markets.

When one is ready to trade commodities by virtue of having learned what there is to know about fundamental and technical analysis, Candlestick trading tactics, and has practiced the art of trading to a fine skill there are a number of practical considerations. The trader must decide which commodity or commodities to trade, how large a margin account to start with, and general limits on how much and it which markets he or she will trade. Trading strategy is not just deciding to buy or sell based upon trading signals. It is deciding how many hours to trade a day and how many to spend doing commodity research. Because one can trade commodity options in commodity futures as well as trade commodity futures the trader will need to decide how much time and effort to devote to options trading as opposed to direct commodities trading.

The last and, perhaps, most important issue if you want to trade commodities successfully is that reviewing results and modifying trading tactics and trading strategy based upon review makes the difference between an average trader and an excellent one. Some traders are better at trading market trends and other do better anticipating the occasional market reversal. Knowing where your strengths are and trading with your strengths is something that comes from an honest review of trading results.



Market Direction: Knowing the candlestick patterns provides a distinct advantage. It allows investors to identify which price moves may occur with much more force in an uptrending market. Obviously most stocks will move up during uptrending markets. The candlestick investor gains an advantage by knowing which stock prices have the opportunity to produce much stronger returns. This is based upon a simple premise. Candlestick patterns produce strong and predictable results. When the indexes develop price patterns, such as a J. hook pattern that has formed in the Dow, the NASDAQ, and the S&P 500, it can be assumed that there will be J hook patterns forming in individual stocks.

This becomes important information. It allows investors to purchase at the appropriate times and has an estimated price move once they have entered the trade. The price move is usually going to be equally strong as the price move prior to the Jay hook set up. The calculated price move is usually going to be a lot stronger than most price moves occurring during the uptrend. Most investors have a difficult time analyzing which direction the market should move. The candlestick investor not only has a fairly accurate analysis of the market direction, they can also utilize their knowledge for identifying which patterns may be producing the bigger price potentials.

DOW

Many of our recent recommendations came from potential short situations reversing and  forming up J-hook patterns. The rationale is very simple. Prices that appeared to have moved up very rapidly would be more likely to sell off fairly hard if the market was still heading down. However, having the visual ability to recognize when a J-hook pattern was setting up, reversing the short positions back to long positions made sense. The rapid move to the upside was the precursor to a possible J-hook pattern.

IDT

 

Private training sessions - The August 13 training and the August 28 training are sold out. The private training sessions are excellent formats for getting insights into full-time trading perceptions. Many investors continually learn about candlestick analysis, but they just do not seem to have that final turn of the key that allows them to make profits consistently. The major benefit of these small group private training sessions is for each individual investor has every single questioning aspect answered. this puts them into a position of not having to doubt what they might not know and start using the candlestick information in a productive progressive application.

There are two people scheduled for a third training session to be done in Pittsburgh PA. However, if there are two more people that would like to get the complete knowledge of candlesticks from a private training session, we will schedule another three day training during the first week of September back up on Keuka Lake. It will still be relatively warm and the wine tasting just as enjoyable. If you would like more details on what will be presented in a private training session and where it will be presented, please e-mail Steve@CandlestickForum.com.

Chat session tonight at 8 PM ET

Good Investing,

The Candlestick Forum Team


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