Commodity Market Trading Guide & Basics

Current Era is the era of smart investors and traders. Over the past 1 decade a increased no of investors has been observed in the commodity and stock market. But from last 5-6 months investors are not earning expected returns from this market investment, despite this there is no sudden fall in the no of commodity investors. Commodities specially the bullion gold and silver has ever given the best returns to the traders and investors.

5 Key Factors to Consider while Trading in Indian Commodity Market

• Suppose if you are trading in NCDEX agri commodity market then you must closely watch the monsoon. Good & timely monsoon may produce good crops which in turn may give momentum to the agri commodity market.
• Apart from the agri commodity market another one is MCX in which non agri commodities are traded. Most of the investors like to invest in gold and silver. Main factors that may affect the bullion commodities are global meetings, currency interdependency INR to USD, global market trend etc. One must have a close look on these all events.
• Choose the best exchange to invest in as per your portfolio. Try to gather all information about the exchange rules, history and trading norms etc.
• Choose the Reliable broker in your locality which may guide and train you for the commodity trading. 
• Do not invest the whole investment amount in a single commodity. Instead diversify your investment in different commodities and segments. For example if you have decided to start your trading with Rs. 1 Lac. You may go to invest 50% in bullion segment, 30% in energy and rest 20% in base metals.