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The commodity markets are driven by Supply and Demand and traders trade then daily. The smart traders know and research the Commodities themselves. They know all the fundamentals of these markets they trade and are well funded. Commodity traders in the big firms can trade 80% of the market. They control a large amount of the market. If you keep a watch on the spreads you can sometimes see where the money is flowing. By watching this you can see the support and resistance areas. It take a well rounded trading plan and experience to trade the commodity markets. If your brokerage service has a demo account you need to use that before trading real money in this type of trading. With a commodity markets trading platform you can get use to how these markets are traded. It takes time and patience to get the hang of place trades in commodities. Your broker should also be able to help with that since they want your money anyway. The most important thing is to know how to place the trade and use a stop loss to save your trading capitol. Using a demo platform first will keep you from not placing the correct trade. Traders need to set their take profit and stop losses on the platform. This is all learned in the demo account so when you are trading real money you are already familiar with how to set these areas. You should only trade the commodities that you have researched and are knowledgeable of. Trading blindly will wipe out your account in a short period of time. You can test your trading ideas in the demo account. You can set the chart indicators that you like to use and back test them to see if they are making you money. The more successful you are in a demo account will lessen the risk when trading real money. The main thing for any new commodity trader, is trying a variety of strategies to find out which works the best for you. The broker's simulated account is the perfect place to start your trading, with no actual financial risk on the table. Once you are making money in the demo and you decide to start trading real money you must copy what you did in the demo account. If you deviate from this you are asking for trouble. You should expect to have a few losses this is part of trading commodity markets. Traders should not chase losing trades. No system will be right all the time. Your trading system need to be evaluated all the time. You need to keep your losses small and your winners large this is what trading is all about. It can be done with a good trading plan and sticking with it. You should not change the rules if you are making profitable trades and don't get greedy this is a big mistake. You can make money in the commodity markets with a trading plan and learning how to trade them in a brokers demo account. commodity trading information
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