Candlestick Trading Blog
What is more profitable today, trading commodities or stocks? Which is safer? Certainly today’s stock volatility can lead to substantial profits when traders successfully use technical analysis tools such as Candlestick charts to follow and predict market sentiment. And you can lose in the stock market if you don’t use tools like Candlestick signals to assess market sentiment. Commodities trading can be profitable. There may or may not be a different set of fundamentals than when trading stocks. And Candlestick chart patterns had their start in trading commodities, rice, in ancient Japan. In thinking about which is better today, trading commodities or stocks, there are a few issues to be considered.
Economic uncertainty and a valid concern about the solvency of nations have introduced a note of panic into today’s stock market. But, stocks that depend upon economic growth are more volatile than consumer products stocks. A double dip recession may reduce the sales of computers, cars, new homes, and luxury items but it very likely will not do much to change sales of household bleach, hand soap, or other common household items. In trading commodities, such as with gold futures, traders benefit from economic uncertainty but oil futures fall in response to the threat of an economic downturn. On the other hand, wheat, soybean, and corn futures are typically less affected by the economy and more affected by global weather patterns, which in turn affect harvests. Traders can choose trading commodities or stocks to benefit from today’s chaotic markets and they can also play it safe by picking stocks or commodities to trade that are less affected by the economic drivers of today’s markets. No matter whether one is trading commodities or stocks the trader does well to use both fundamental and technical analysis to make profits. Fundamental analysis gives traders a clear sense of the potential in an individual stock or commodity. But it is technical analysis with Candlestick chart formations that gives the trader an objective view of market sentiment. In times like these the psychology of trading can destroy even the most well designed trading strategy. Greed and fear have ruined many well-made trading plans. But with easy to read Candlestick analysis signals as a guide in trading commodities or stocks, traders can profitably navigate the ups and downs of the market. In short, both stocks and commodities offer market volatility as a path to profits. Also, in trading commodities or stocks one can find more stability in some equities than in others. In both markets traders can buy or sell directly or trade options. In both markets traders are well advised to do technical analysis with Candlestick charting techniques in order to obtain and maintain a clear view of the market and its immediate potential. Candlestick traders can profit by buying stocks or commodities, selling stocks or commodities, selling short with either, or staying out of either market based on Japanese Candlestick trading signals that have served traders well and gained traders profits for centuries. Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
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