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Learning to Trade Commodities - An Alternative to Falling Equities?
from: James McKerrLearning to trade commodities can be a great way to continue with profitable investing in the financial markets despite the current high volatility in the equity markets. The fallout from last years sub prime crisis, and the so called credit crunch has battered work stock indices over recent months with large falls in value widespread.
Investors have been looking to withdraw their money from equity stock investments and opt for alternative, less volatile investment opportunities. Learning to trade commodities is one alternative that many investors are taking. One of the advantages is that the commodities markets are to a certain extent uncorrelated to equity markets.
Commodities markets have undergone a period of sustained growth in recent years thanks in part to both booming populations and economies in China and India. As these economies industrialise rapidly their demand for raw commodities such as steel, iron, etc is rapidly increasing.
Obviously there is only a finite supply of iron ore and other commodities in the ground. Combine this limited or constrained supply with a booming demand and you have the main reason for recent rises in commodities prices. Assuming you believe these economies are going to continue to grow, then learning to trade commodities may be very profitable in future.
One point worth making is that the commodities can be equally volatile as the equities markets. Unlike equity stocks, there are no balance sheets or past earnings to study when investing in a raw commodity. Instead the markets are often moved by sentiment which is very often driven off factors such as political unrest in a certain country, severe weather events like hurricanes or floods.
Learning to trade commodities is certainly not for the faint hearted then however it can provide a good alternative to the troubled equities markets.
If you want to find out more information about learning to trade commodities, smart stock investing or you simply want to learn to invest money please visit the authors website.
Article Source: http://EzineArticles.com/?expert=James_McKerr
National Commodity Exchange News
Castor rises on crop-damage fear - Hindu Business Line
 Hindu Business Line | Castor rises on crop-damage fear Hindu Business Line Its February contract was up Rs 149, or 4 per cent, to Rs 3869.50 a quintal with an open interest of 6860 lots on the National Commodity and Derivatives Exchange, while March roseby Rs 147.50 to Rs 3831 with an open interest of 10440 lots. |
Broker audits set to be made mandatory soon; to bring more tranparency in ... - Economic Times
Broker audits set to be made mandatory soon; to bring more tranparency in ... Economic Times The regulator and exchanges will audit around 800-900 members each year of five national commodity exchanges - MCX, NCDEX, National Multi Commodity Exchange, Kotak-promoted Ace Exchange and Reliance ADA-anchored Indian Commodity Exchange. |
Turf war to regulate spot commexes hots up - Business Standard
Turf war to regulate spot commexes hots up Business Standard There is increasing jockeying for the power to regulate the emerging electronic spot commodity exchanges. The latest bid is from the Union agriculture ministry, which has said spot exchanges should come under their jurisdiction. |
Natural Gas Rises on Cold Weather Forecast: Commodities at Close - Bloomberg
Natural Gas Rises on Cold Weather Forecast: Commodities at Close Bloomberg ... according to the National Weather Service. Private forecasts predict a brief cold spell followed by mild temperatures in mid-February east of the Rocky Mountains. On the New York Mercantile Exchange, natural gas for March delivery rose 2 percent, ... |
Commodity exchanges bank on new contract launches - Hindu Business Line
Commodity exchanges bank on new contract launches Hindu Business Line Some of the recent new launches include soyameal on Ace Derivatives and Commodity Exchange Ltd, rubber contract on National Commodity and Derivatives Exchange and cotton on MCX. Over the last few years many contracts launched by commodity exchanges end ... |