Learn Commodity Trading Strategies

Before coming up with a commodity plan a trader must learn about the various commodity strategies that they can sue to trade commodity. Coming up with the right commodity strategy can increase your chances of becoming more successful in commodity.

For traders who want to learn about commodity strategies there are 50 commodity strategies listed in the commodity strategies section of this strategy. This strategy section also shows traders how combine these strategies to create a commodity system. The commodity is a set of rules that will be used by commodities traders to generate commodity signals. For example the commodity system rules will specify how two or more indicators will be used together to generate a buy or a sell commodities trading signal.

As a trader the strategy you select should be applied in your trading once you decide what type of trader you are and what type of trading method you will be using to analyze the commodity market moves.

For examples you might decide you want to be a scalper you will use your scalping strategy and only open traders for a few minutes. If you are a commodity trend trader you will use your trading strategy after you have decided the commodity trend of the commodities market. If the commodity trend is upwards you will use your commodity strategy to open buy commodities trades.

If you are a day trade you will use your strategy to open trades that will only be opened for a few hours. Your trades should all be closed during the day & you'll not hold your trades overnight. As for the trading method which may be that of commodity trend following you will first draw commodity trend lines on the commodities chart to determine the overall market commodity trend & after that you'll then apply your trading strategy to open commodities trades.

In technical analysis there are various methods used to trade commodity trading which a trader might use to determine which of these techniques of trading they will be using when trading the commodities market. After choose in their trading technique traders will then apply their commodity strategy to open commodities trades.

Types of Commodity Trading Methods

There are two general techniques of trading the commodity market, these are:

1.Commodities Trend Trading

2.Range Trading

Commodities Trend Trading

In this method a trader will first of all determine the overall market commodity trend before applying their commodity strategy to open commodities trades.

To determine the commodity trend - this can either be an upwards commodity trend or a downwards trend.

A trader may use commodity trend lines or moving averages to determine the overall market trend. After determining the commodity market commodity trend then the trader can use their commodity strategy to open commodities trades.

For example a trader may determine that the commodity market commodity trend is upward by using moving averages. The trader may then use a commodity indicator such as Bollinger bands and open trades once the commodities price retraces to the lower Bollinger band because this lower band will act as the support level of commodities price. Therefore the trading strategy that the trader will be using is the strategy of resistance and support levels and the trader will be using Bollinger bands to determine these points and open and close trades based on these points.

Range Trading

Range trading is a method of commodity trading that move within a particular band of commodities prices and only oscillates between these two points without moving much outside these two points.

A trader will then use the strategy of support and resistance to determine which levels to open buy or sell commodities trades. The trader will draw a support line and a resistance line. The support level will be used to open buy commodities trades and the resistance level will be used to open sell commodities trades.

The most popular trading method between these 2 is the commodity trend trading method. Commodities traders should always try to trade with the commodity trend method as this technique is the most reliable method when it comes to trading commodity. Even though sometimes the commodity market will be trending and at other times the commodity market will be moving in a range when the commodity market is consolidating traders should try to trade the commodity market only when there is a trend. After determining the commodity trend traders will then use their commodity strategy to determine when to open buy or sell commodities trades that are in direction of the overall market trend.

Once you have decided what type of trader you are: scalper, day trader or swing trader you should then come with the following:

1.Trading Method

2.Trading Strategy

After coming up with this 2 you'll then combine these 2 & use these to detect when to buy or close trades.

You can then practice trading on the practice account so as to determine profitability of your technique and strategy. You will then use the results to improve the profitability of your method & strategy and once you have gained experience to trade with these 2 you can then open an account & begin trading the live commodities market.