Good future - the best deal on trade
Here we see the best deals on trade, long-term trend followers - and how to blend these commodities and futures contracts, to get good diversification - large and profit potential. We also reveal a commodity contract that every trader should be looking to trade.
One of the great advantages of commodity futures trading is a wide range of UN groups that correlation can be traded.
A major trade groups are:
. Currencies
. Interest rates
. Stock Indices
. Grains
. Meat
. Energies
. Metals
. Food and Fibre
The big moves came just a few times a year - and of course, in futures and commodities, which is great moves that make large profits.
The only groups or diversity?
In the future, and commodity trading, it depends on the risk / reward you want - and the amount of capital you have.
If you trade only one or two groups, then your commodity futures trading and risk / reward will be higher
Best trade agreements
We have outlined the best futures and commodities contracts below - based on the following criteria:
. Liquidity and investor participation
. Long-term trends over the last 30 years.
Currencies
Huge market for long-term trend followers - all currencies exhibit long-term trends - as they reflect the underlying health of the economy.
A good place to start is the dollar index, which may be less volatile than individual currencies - and is suited for long-term position traders.
Interest rates
Another big group - interest rates - considered "boring" by many commodity futures traders - but they are not! They have great long-term trends - the best deal to be T and T Bond notes.
Stock Indices
S & P is one, most commodity futures traders and look - but there are many others. Good markets for trade include DAX, FRA and Dow Jones.
Energies
Energies are the largest physical commodity group in the world - in terms of volume. Energies group exhibits good long-term trends all the time.
All traders should start with crude oil, but for traders who really want to taste some action, check out natural gas - where trends come here, they are huge! And be wary of this market - it is only for commodity futures traders with deep pockets - and strong nerves.
Adding diversity
The above are suitable commodity futures trading as separate groups - though the contracts listed below will only trade as part of a diversified portfolio - because of reduced liquidity, and limit moves.
Metals
The main focus of speculators involved, copper, gold and silver - but the White metals platinum and Palladium, have produced some of the best trends of recent years.
These rare metals, precious metals - but double up as an industrial metal as well. Although trading volumes are thin, volatility and limit moves are frequent - for traders with deep pockets, these metals offer outstanding long-term trends.
Grains and Meats
Grains and meat were big contracts for speculators in years gone by - but they have lost some of its luster. Speculators are now more trade finance - however, pork bellies, Live Hogs, Feeder Cattle, and live cattle, still offer commodity futures traders major trends.
Grains are similar and Soy Complex - wheat, corn, and of the markets to look at.
Food and Fibre
The markets to look at orange juice, coffee, cocoa and cotton. Cotton is probably the best market for long-term trend followers - but this is a very personal choice.
Successfully Blending portfolio
Today, many traders simply focus on finance (and currencies are the best group to trade) - but as you can see from the above that commodity futures traders, have many contracts from which to choose.
With the expanding global economy quickly, there's a deal that looks great long term buy - the contract to buy and hold, for huge gains. It is the index CRB - a basket of goods - and looks set to soar - because a good go up, based on the huge demand from countries such as India and China - Check it out!
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