Commodity tips for beginners

VINSON FINANCIALS

COMMODITY TIPS FOR BEGINNERS

ADDRESS 26 Voreiou Ipeirou Street, Limassol 3022, Cyprus

CONTACT (+357) 25 02 88 6163 general@vinsonfinancials.com

COMMODITIES THAT FALL UNDER THE DOMAIN OF FOOD, METALS, ENERGY, ETC., HAVE A MAJOR IMPACT ON EVERYDAY LIVES OF THE PEOPLE. DEPENDING ON THE PRODUCTION, DEMAND AND SUPPLY OF THESE COMMODITIES, THEIR PRICES CAN VARY AND THEREBY AFFECT PEOPLE. SUBJECT TO THE GLOBAL FINANCIAL MARKETS, THE VALUE OF THESE COMMODITIES TEND TO FLUCTUATE. THE IDEA OF COMMODITY FOREX ONLINE TRADING TAKES ITS BASIS FROM LEVERAGING THE GLOBAL MARKET AND COMMODITY PRICES CHANGES IN ORDER TO MAKE MONEY. YOU CAN INVEST IN ANY TYPE OF COMMODITY, FROM AGRICULTURAL PRODUCTS LIKE WHEAT, RICE, COTTON AND CORN TO METALS LIKE COPPER, SILVER, PLATINUM AND GOLD. HERE ARE A FEW TIPS TO KEEP IN MIND AS YOU FORAY INTO THE WORLD OF COMMODITY FOREX ONLINE TRADING: 1. FIND A GOOD BROKERAGE FIRM

2. LEARN HOW TO BALANCE OFF THE POTENTIAL RISKS

To do commodity forex online trading, you’re going to need a brokerage account where you can keep the money to be invested. You’ll also be needing this account for holding and trading your commodity-based securities. Find a reliable and renowned brokerage firm with whom you can open and manage such an account.

Commodity trading is an investment where the chances of profits and losses are both comparable. Investing solely in commodities, therefore, may not be the wisest idea. You should have a large, diverse investment portfolio of which commodity trading forms a part. A diversified portfolio, where the investment areas are not closely corelated, pays off well in the long-term.

VINSON FINANCIALS

PAGE 1

3. TAKE YOUR TIME IN DECIDING WHERE TO INVEST

4. GIVE A SLOW START TO YOUR INVESTMENT

There are many areas in commodity trading where you can invest. Some of the common commodities include metals like copper, silver, platinum and gold, agricultural products like soybeans, coffee, sugar and cocoa, energy related products like oil, petrol and natural gas, and so on. You should be careful in deciding which commodity market to invest in for the best results.

Don’t go overboard with the money that you plan to initially invest in commodity trading. If you’re trading in a particular commodity market for the first time, you’re probably unaware of the intricacies of the market. Investing a high sum without a detailed market understanding could expose you to many risks. So it’s best to start by investing only a small amount of money.

5. KEEP YOURSELF UPDATED WITH NEWS

6. REVISIT AND ANALYSE YOUR PORTFOLIO REGULARLY

Global events can cause major changes in commodity markets. As an investor in commodity market, you should make it a point to always stay abreast of all the latest happenings around the world.

Daily read up on the business and financial news of various global markets.

By staying updated you can avoid getting any unpleasant surprises.

It’s a good idea to take a look at your commodity investment portfolio from time to time and check if there is any need for adjustments. Maybe you need to expand or reduce the number and type of commodities that you’re currently investing in depending on the present conditions. Maybe you need to let go of commodities that are less profitable and acquire commodities that are likely to be more profitable at the given time.

VINSON FINANCIALS

PAGE 2