Today we will be discussing commodities trading in our new article, “Commodities Trading: An Opportunity or a Bust?” so that you are able to get the inside scoop on what’s up with this portion of the trading market.
That brings us to our first question – what is commodities trading? In short, it is a market that focuses on buying, selling, or trading a product (typically falling in the categories of metal, energy, livestock and meat, or agricultural goods). So why do people want to trade commodities? The answer is simple – there is the potential to make a good amount of money if your investment properly takes advantage of commodities’ ability to minimize risk, realize big rewards, and maximize ROI.
So what’s new with commodities? Commodities trading, just like any other section of the investing market, has had a whirlwind of a year with ups and downs, record highs, and more. The pandemic played a huge role in the outcome of commodities trading – with sky-high demand and shortages for many areas of the commodity market. Lumber, copper, oil, and hogs all had their moment to shine this year as demand shot up and various issues regarding supply occurred. Now, commodities pricing seems to be leveling out a bit – which is a relief for many investors who saw commodities pricing as a reflection of brooding inflation. With that being said, commodities pricing is still close to record highs. Lumber remains nearly twice the expected price for this time of year; Copper, hogs, and several agricultural products are still hovering around their highest prices in years; and oil has risen to its highest price point in 4 years!
So what should we look out for in the coming months regarding commodities trading? Keep an eye out for consumer spending habits and material costs. Consumer spending habits have been iffy since the pandemic and weren’t as high as many investors hoped they would be by this point. High material costs from an upset workforce and lingering pandemic issues can pose both an opportunity and a problem for commodities investing. It is important to trade with logic rather than emotions and is ESPECIALLY important to pay attention to key indicators of upcoming patterns and trends when trading commodities. If you are reacting to news it is too late for you to get in on prime investing.
If commodities trading isn’t a new concept or always an easy win, why should I trade in commodities? Commodities trading may not be as new and exciting as cryptocurrency, but it still has the potential to give you big returns! Many of our clients have had success with trading commodities this year (particularly lumber) as our traders used data analysis to time the markets just right for a prime investment! It is a great way to boost your ROI and protect your investments from the effects of inflation.
In a short answer to the question “Commodities Trading: An Opportunity or a Bust?” the answer is it can be both! It’s all about how you trade and manage your investments.
We believe that when commodities trading is done right it can be very lucrative. That is why we offer a selection of commodities trading strategies to our clientele. Visit our commodities trading strategy page to find out more about how our trading formula can help you create a high probability risk/reward strategy, excel at money management, and navigate decisive trade “adjustments” with ease. You can also speak with one of our client care specialists and ask to see an example of one of our client accounts to get a real taste of what commodities trading can offer.
Thank you for tuning into our article “Commodities Trading: An Opportunity or a Bust?” If you are interested in learning more about our trading strategies or would like to speak with one of our client care specialists for more information, give us a call at (800) 883-0524 or contact us via email or our contact form. Happy trading, everyone!