Commodities Trading Guide

Day Trading Commodities Section

Day Trading Commodities Navigation


Main Trading Home Page
Tell A Friend about us
Books On Day Trading Financial Commodities |
Commodities Trading Brokerages |
Agricultural Commodities Trading Companies |
Trading Systems For Commodities |
Commodities Futures Traes Trading Commission |
Commodities Trading Corn |
Teaching Beginners Trading Commodities |
Books On Day Trading Financial Commodities |
Commodities Futures Trading |
Commodities Trading Advisors Qualifications |
How To Become A Commodities Trading Advisor |
Trading Forex And Commodities Online |
Commodities Trading Charts |
Commodities Trading Course |
Futures Trading Commodities Charts |

List of Commodities-Trading Articles
List of Commodities-Trading Links

Day Trading Commodities Best seller

Buy it Now!

Best Day Trading Commodities products




$77 Million
in 2 Years?


6 Figure Jobs - Executive Job Seeker


FREEDOM...Read More...Click Here

Stock & Commodity trading
Easily spot market turning points in Stocks and Commodities. Fibonacci and Gann price and time secrets and software. Free 7 day e-mail course.

Intelligent stock trading
A how to guide showing you step by step how to at the very least double your investment every twelve months in the stock Market.

Social bookmarking
You like it? Share it!
socialize it


Subscribe to our newsletter AND receive our exclusive Special Report on Commodities-Trading
First Name:

Main Day Trading Commodities sponsors

Day Trading Commodities


$77 Million
in 2 Years?




Welcome to Commodities Trading Guide


Day Trading Commodities Article

Thumbnail example

This is a selection made from among articles on Day Trading Commodities. For a permanent link to this article, or to bookmark it for future reading, click here.

Commodities Trading Systems - The Underlying Truths.


There are certain procedures to follow when trading commodities. Computerized programs or the commodity trading systems are responsible for giving signals to the members when to buy or sell commodity futures or options contracts. The system produces the signals basing from mathematical formulas typically based from the trading data including prices and trading volumes involve in the technical analysis.

Trading systems that are based from technical analysis are attempting to predict the price movements in the future basing on price trends, price relationships and historical prices.

Do not rely too much on trading results being hypothetically posted. Several promoters of commodity trading systems often advertise hypothetical results. It is based from simulations of trading using either the historical data prices or real time simulated computer trading. Do not be fooled because there are some promoters only pretend that they have traded future contracts occurred in the past using the market price.

They then procure calculations of trading results basing from actual historical prices. The results are impressive, showing trading results having huge net profits within small marginal calls. Try to observe that the results do not reflect the actual trading. There is no actual investment, no actual profits, no actual future accounts, and no actual trading that really happened. All are only simulation results.

Assess these inherent limitations of hypothetical results of commodity trading.

- Hypothetical results do not go along 20/20 with the actual or historical results. The results produced on the trading system are not traded in the actual market so there is a high probability of risks that a trader can face about decision making. Actual price and demand of the commodity and its supply could have greater impact if compared to the hypothetical results.

- Real time posted on the results is not real. Hypothetical results based their tested systems on historical market data but trading in real time uses a live feed data when a system trading is being tested.

- There is a financial limitation. Hypothetical results do not take into consideration the traderís ability of meeting margin calls or absorbing the losses of the trading. It already assumes that the trader who uses the trading system can survive financial losses and meet the results of margin calls. Remember that in reality, it is very difficult for a trader to sustain unacceptable losses and margin calls due to commodity trading thus this changes also affects the traderís decision whether to continue on trading or not.

- The results posted are not tested under the real condition of the market. It only assumes that specific prices are used to buy and sell future contracts. Because these assumptions are not based from the real market condition, the systems can either underestimate or overestimate its performance. Remember that in reality, the execution of a trade is impossible to make in some of the markets. The actual bid or asked spreads does not reflect the actual prices as what is being posted in the hypothetical results.

- There is a possibility of rigging results. Be cautious because some promoters can display historical trades having the best-yielded profits.

- The promoters failed to consider the cost of leasing or purchasing the trading system.

Every person should remember that in trading commodity options or futures by purchasing a certain trading system couldnít guarantee profits. Commodity options and futures belong to endeavors which are regarded as high risks so there is no guaranteed trading system appropriate to gain profits.

Christine Gray is a recognized authority on the subject of online trading. Her website Trading Exposed provides a wealth of informative articles and resources on everything you will need to know about commodities trading. All rights reserved. Articles may be reprinted as long as the content and links remains intact and unchanged.

Other Day Trading Commodities related Articles

Commodities Option Trading
Commodities Futures Trading Commission
Commodities Future Trading
Commodities Trading
Futures Commodities Option Trading

Do you want to contribute to our site : submit your articles HERE

This space can be enabled / disabled from your admin panel!

Day Trading Commodities Specific links

Day Trading Commodities News

No relevant info was found on this topic.