http://www.candlestickforums.com/ Commodity Futures Profits Commodity futures profits depend upon accurate fundamental analysis of the commodity in question and timely technical analysis of commodity price movement. Because history repeats itself in commodity futures, traders can use time honored Candlestick analysis tools such as Candlestick charts and Candlestick pattern formations to predict the continuance of a price trend or a market reversal. Traders can use options trading in commodities also in order to have the option but not the obligation to buy or sell commodity futures if an anticipated price move happens. Commodity and futures training will help the beginner at commodity trading to learn the skills necessary to reliably earn commodity futures profits. Commodity traders can buy and sell everything from gold futures and natural gas futures to corn futures and interest rate futures. Each commodity has its own specific fundamentals but all of them have predictable price movements when the trader uses technical analysis tools, whether computer aided technical analysis software or a pencil for a hand drawn graph. Understanding the technical indicators that predict price movements can lead to handsome commodity futures profits on any commodities exchange.

1. Commodity Futures Profits
By
www.CandlestickForums.com

2. Commodity futures profits depend upon
accurate fundamental analysis of the
commodity in question and timely
technical analysis of commodity price
movement.
www.CandlestickForums.com

3. Because history repeats itself in
commodity futures, traders can use time
honored Candlestick analysis tools such
as Candlestick charts and Candlestick
pattern formations to predict the
continuance of a price trend or a market
reversal.
www.CandlestickForums.com

4. Traders can use options trading in
commodities also in order to have the
option but not the obligation to buy or
sell commodity futures if an anticipated
price move happens.
www.CandlestickForums.com

5. Commodity and futures training will help
the beginner at commodity trading to
learn the skills necessary to reliably earn
commodity futures profits.
www.CandlestickForums.com

6. Commodity traders can buy and sell
everything from gold futures and natural
gas futures to corn futures and interest
rate futures.
www.CandlestickForums.com

7. Each commodity has its own specific
fundamentals but all of them have
predictable price movements when the
trader uses technical analysis tools,
whether computer aided technical
analysis software or a pencil for a hand
drawn graph.
www.CandlestickForums.com

8. Understanding the technical indicators
that predict price movements can lead
to handsome commodity futures profits
on any commodities exchange.
www.CandlestickForums.com

9. Commodity futures profits have little to
do with the current price of a
commodity, the spot price. They have to
with predicting the commodity price on
a future date, as much as eight years
away in the case of oil futures.
www.CandlestickForums.com

10. Traders agree to buy or sell a
standardized quantity of a commodity
on a given future date, the settlement
date.
www.CandlestickForums.com

11. Most commonly traders will exit their
position a day or two before the
settlement date as they are speculating
in the commodity market and are not
producers or buyers of the commodity in
question.
www.CandlestickForums.com

12. On the other hand, producers and
buyers of commodities such as gold,
corn, live cattle, and the like, do, in fact,
buy and sell the actual commodity.
www.CandlestickForums.com

13. These people are hedging when they
trade commodities. Although they may
well make commodity futures profits
they primarily are interested in having a
fixed price for at least part of their
production or what they will need to
buy.
www.CandlestickForums.com

14. A gold mining operation will commonly
sell commodity futures (gold) for a year
in advance.
www.CandlestickForums.com

15. This will guarantee that some portion of
their production will earn a guaranteed
income.
www.CandlestickForums.com

16. A milling company may buy futures on
Durham wheat to guarantee a supply at
a reasonable price for making pasta.
www.CandlestickForums.com

17. Commodity futures profits can also be
gained from trading options on
commodity futures.
www.CandlestickForums.com

18. This seems more complicated but it is
simply buying calls or buying puts,
selling calls or selling puts, on
commodity options contracts.
www.CandlestickForums.com

19. The trader who buys an option will need
to pay a premium and the trader who
sells will gain a premium.
www.CandlestickForums.com

20. The buyer will have to option but not
the obligation to buy (call) or sell (put) a
futures contract if the price movement
of the future is favorable.
www.CandlestickForums.com

21. In buying options it is possible to make
nice commodity futures profits without
the risk of owning a contract outright
when the market takes a big swing
contrary to the trader•fs expectations.
www.CandlestickForums.com

22. In selling options the risk is similar to
trading commodity futures
directly, except that the trader will gain
the premium.
www.CandlestickForums.com