Website Chat - First Session
What is a commodity?
A commodity is an article of commerce or a product that can be used for commerce. Examples of commodities are tangible goods like agricultural products (soy beans or wheat); metals (gold and silver); petroleum and foreign currencies. A futures contract is a contract to buy or sell a commodity at a future date.
Do I need a broker to trade commodities?
Yes. All orders are handled through a brokerage firm and are executed on the Commodity Exchange floor. There are 10 major Commodity Futures Exchanges, the oldest being the Chicago Board of Trade which was established in 1848. The purpose of the Commodity Exchanges is to bring buyers and sellers together to trade contracts.
I hear a lot about trading "seasonals". What does that mean?
Seasonal trades are trades that have been around for a while; they have a history. There is a seasonal pattern to the continuity of highs and lows. From looking at past history, we can expect these specific markets to make certain moves at certain times of the year.
Is there a secret to trading seasonals?
The thing to remember in trading seasonals is that the past does not precisely predict the future. Trade just the best seasonals. If you do a little research you will see which seasonal patterns have held up best over time. Then keep in mind that even the best seasonals shift - meaning that the high and lows come in a general time period but not precisely at the same dates as the past. Look for trading "zones". The pattern may be slightly ahead or behind historical patterns.
Does forecasting really work?
In 34 years of trading, I have yet to see anyone consistently forecast the markets. What you need to make money is a systematic trading system that can give you a consistent advantage in the game.
