[sharetrading] Prerequisites to invest in commodities and Gold

 

Hi,

 

Commodities trade are derivative products. Hence one must know the risks involved in this segment.

Rest in supply, demand and manipulation. As in every segment, every commodity has a volatility factor. For eg Gold and Silver though in the same  asset class trades in different volatility.

 

Knowledge of.........

 

Fundamental is  Long term factor. Technical MediumTerm and Manipulation Short Term.

 

Hence primary pre requisite will be to understand the risks in futures as the risk - reward ratio is very high.

 

One should do a deep study before jumping into Derivatives Trade. Gain strength in one commodity, track it for a period, make mock trades and then take a call based on its success.

 

Last but not the Least - the ability to with stand the Loss of Capital not once but a series of times.

 

 R.S.Aittreya

 

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From: badrinath m <badrinath.medi@gmail.com>
To: sharetrading@yahoogroups.com
Cc: sharetrading.moderator@yahoo.com
Sent: Sat, 5 December, 2009 3:58:16 PM
Subject: [sharetrading] Prerequisites to invest in commodities and Gold

 

Hi

Can anyone please tell me the Prerequisites to invest in Commodities and Gold

Thanks in advance

Regards
Badrinath M

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