How to Begin Trading Commodities Futures
Before we talk about futures commodities trading, please keep in mind that trading in these contracts has: 1) High degree of risk for financial losses 2) High leverage 3) High volatility and fluctuations So please use only risk capital, funds that will not adversely affect your life style. 1) Get familiarized with are the contact sizes (and point value) for each commodity traded. While there are hundred of contacts around the world, maybe you should try and focus on the ones that are trading in the US, specifically in NY and Chicago. 2) Ask for the margin requirement on the different commodities. Each commodity has its requirements and that should help you determine what commodities you should have in your portfolio 3) Decide how you are going to trade: Are you going to use a mechanical trading system, technical trading system or on fundamentals. What ever you use, make sure you trade with some kind of methodology; just don't use hunches and "tips" on late night TV....