Perfect System for Commodity Trading

Author: brend

To rescue US economy, FOMC has cut interest rate from 6% to 0.25%, not much ammunition left. Japan which is the world's 2nd biggest economy has suffered due to its strong yen. Even strong and stable Toyota has reported loss. China and Asia which have relied on US for most of their exports have started to show signs of weakness.

I say with confidence that 2009 will be a bad year for businesses, employees and global economy. We will see more cost cutting by firm in the form of retrenchments.

When people lose their jobs, they will spend conservatively. Some people may even have to sell stocks and property in order to raise cash for their daily expenses. Do you believe that in this kind of environment stock investments will do well?

Have you learned anything in 2009? If you have not, then learn that stock investment does not do well in all economy environment.

I think the current business cycle is moving downwards from the peak and we are still far from the bottom. I perceived that stock market is going to test its low and move down even much more in 2009.

I have since switched from stock investment to forex and commodity trading at the start of 2008. Here are some of my commodity trades.


14 trades were executed: 10 wins, 3 losses, 1 breakeven

Here are the trades on commodities from 1 Dec to 24 Dec:

1. On 23 Dec I closed my position at 10.41, profit is 28 ticks (US$280).

Original trade:
Shorted 1000 spot silver at 10.69
Stop level at 10.90
Target level at 10.08

2. On 23 Dec I closed my position at 39.33, profit is 33 ticks (US$66)

Original trade:
Shorted 2 lot supermini oil at 39.66
Stop level at 40.50
Target level at 38.72

3. On 19 Dec target level reached for silver. Close position at 11.12, 14 ticks profit (US$140).

Original trade:
Shorted 1000 spot silver at 10.91
Stop level at 11.12
Target level at 11.12

4. On 19 Dec I close my position at 10.97, profit is 10 ticks, US$99.65.

Original trade:
Shorted 1000 spot silver at 11.07
Stop level at 11.30
Target level at 10.87

5. On 17 Dec I close spot silver position at 11.44, profit is 25 ticks, US$250.

Original trade:
Bought 1000 spot silver at 11.19
Stop level at 10.79
Target level at 11.61

6. On 17 Dec target reached for silver. Profit is 49 ticks.

Original trade details:
Bought 1000 spot silver at 10.68
Stop level at 10.40
Target level at 11.17
Closed at 11.17 (Profit is 49 ticks, US$490)

7. On 16 Dec profit stop at 45.81 is triggered. Profit is 40 pips.

Original trade:
Bought 1 lot of supermini Oil at 45.41
Stop level at 43.70
Target level at 47.00

8. On 16 Dec oil trade triggered stop at 44.00. Loss is US$74.

Original trade:
I bought 1 lot of supermini Oil again at 45.41
Stop level at 43.70
Target level at 47.00

9. On 16 Dec oil trade stop triggered at breakeven

Original trade:
Open Long: 1 lot supermini Oil @ 44.67
Stop level: 44.67 (Shifted to breakeven)
Target level: 46.92

10. On 12 Dec gold trade triggered stop.

Original trade:
Open Long: 100 Spot Gold at 833.43
Stop level at 819.00
Target level at 846.38

11. On 10 Dec target level reached for oil

Original trade:
Open short: 1 Supermini Oil @ 44.25
Stop level: 45.00Target level: 43.13
Close at 43.13, profit is 112 ticks (US$112)

12. On 9 Dec cut loss on oil trade

Original trade:
Open Long: 1 supermini Oil @ 44.27
Stop level: 42.00
Target level: 46.80
Closed: 43.42 (Loss is US$32.00)

13. On 8 Dec took profit on gold

Original trade:
Open Long: 100 Spot Gold @ 770.25
Stop level: 739
Target level: 799.50Closed: 774.38 (Profit is US$413.00)

14. On 5 Dec target level reached for oil

Original trade:
Open Short: 1 lot Supermini Oil @ 45.56
Stop level: 48.10Target level: 42.83
Closed: 42.83 (Profit is US$273)

If you are interested to generate alternative income by tapping on BL TS system, send an email to me at metal.commodity@gmail.com.

To open a commodity trading account, click here to open.


Risk Disclosure:
Commodity trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to participate in the futures trading markets. Don't trade with money you can't afford to lose. This website is neither a solicitation to invest nor an offer to Buy/Sell futures or options. The past performance of any trading system or methodology is not necessarily indicative of future results.

About the Author:

Currently I'm working as a trader in a hedge fund. Previously I was working as a commodity specialist in a bank.



Aspires to be a fund manager. In 2007, I had participated in a 1 year stock-pick competition organized by Zacks.com in America. At the end of the competition, I was ranked 407th out of 27,700 participants, hence this makes me top 1.47% of the competition. I had achieved 32.67% return on the competition portfolio, for the same period S&P was only up 6.99%, and Dow Jones was only up 4.16%, hence I had outperformed the broad market by a wide margin.



All the trades can be found in this website: http://www.commoditiestradingpro.com/

Article Source: ArticlesBase.com - Perfect System for Commodity Trading

Why Gold Should be Part of your Stockmarket Portfolio

Author: Jesse Witham

One of the great advantages of CFD trading is that it permits you to seamlessly move within asset classes at little cost, and opens up a wealth of new contracts not just in stocks, but across a range of investment classes. Clients of Blue Index will be aware that we carry out analysis of the gold price on a daily and weekly basis, and our track record in pinpointing the regular movements in the price of the metal has been excellent.


Our long term stance has been bullish since gold ended its 20 year bear market at the turn of the millennium, and for those CFD traders who are not aware of the big picture, this article updates our rationale for long term investment in gold. It should be noted that since we began daily coverage two years ago, gold is up 80% in dollar terms, and over 50% for sterling based investors. We think there is a lot more to come.





Why the outlook for gold is so bullish





The starting point for the analysis of any commodity is supply and demand, and for gold the simple fact is that supply is declining and demand rising. As it stands, and because of the previous lack of profitability in exploiting new mines, most major sources of supply are declining and the global gold market currently faces an annual supply shortage of about 600 tonnes.





The gold supply





World mine production began to level off in the 1990s as gold traded a wide range but remained significantly lower than previous peaks, and by 2004, production was falling at a rate of 5% p.a. according to the World Gold Council. This as yet has not changed significantly and is a long term factor because it can take almost a decade for a rise in gold prices to generate exploration and eventual exploitation of new mines.





In terms of the existing supply, much of this has come from ongoing central bank offloading of gold, and here many developed countries have now stopped both official and unofficial sales of gold. Previously, and as a result of the need to diversify, central banks carried out regular gold sales, but in some cases (see below) the reverse is happening as finance ministers see the need to protect against the inflationary consequence of fiat monetary policies that are rampant across major western economies.





Another aspect of supply that is changing is forward selling from gold producers, where output prices were traditionally locked in to protect against potential future falls in gold. This was a normal part of commodity hedging, and to some extent it might have helped keep the price down, but given the ongoing bull market, mining companies now run the risk of losing potential future profits if they hedge into rising prices. It is estimated that global gold producers have reduced forward sales by over 40%, which would result in a drop in supply of almost 1000 tonnes.





Demand for gold





A big change in demand has come from central banks in China, Japan, India and Russia as a result of the need to diversify their vast US dollar reserves to some extent. The Russian central bank has hinted more than once that it plans to double its gold reserves, and the subject has regularly been mentioned by the Chinese central bank. All this is mainly as a result of the high proportion of trade-related US dollars flowing into their coffers, which has made them proportionately more reliant on the value of those dollars held.





As an example of potential demand, Japan and China have the eighth and tenth largest gold holdings in the world, but their current gold holdings are equivalent to just 1% of respective reserves. An increase of 50% in their gold reserves for just these two central banks would be the equivalent of buying over 600 tonnes, which is around a quarter of world annual mine production. Russia and India’s gold as a percentage of total reserves is slightly higher but stands at just 4%, so there is scope for additional demand here.





Asset allocation and investment in gold





Back in the 1970s commodity investment was an essential part of asset allocation for diversified portfolios, but despite the long term bear market ending just after the turn of the millennium, many investors continue to shun gold stocks. The two biggest gold stocks in the world are Barrick Gold Corporation, now valued at $36bn, and Newmont Mining, worth £21bn, and the total value of the top ten gold stocks is less than $150bn. If you compare this with the current value of Exxon Mobil at $505bn and it can be seen how insignificant gold stock valuations remain given the continued potential of this sector.





The total market for physical gold is also small, and stands at around $3.5 trillion, but the total value of the US stock and bond markets alone is close to $40 trillion. For asset allocation purposes, a 1% move into gold and gold stocks would equate to the purchase of eight times the annual production of gold worldwide.





M3, inflation and the gold price





With M3 money supply growing rapidly in most of the developed economies, the only outcome other than drastically higher interest rates, which looks unlikely, is a devaluation of currencies as has been the case throughout the last century. Should the dollar continue to move to lower ground as measured by the dollar index, which looks likely, further diversification into gold and other asset classes as a protection against the falling value of dollar reserves is likely to accelerate.





In 1980, the gold price peaked at $850 in times of raging inflation and 27 years later it is still below that peak level. For it to get back to those levels, which might be seen as extreme at the time, it would now need to be closer to $2000. In real terms though it looks dirt cheap, and long term investors should view $1000 as a realistic target in the next couple of years, which is 25% higher than the price right now.

About the Author:

Mike Estrey is the Head of Research for Blue Index, the Day Trading specialists in Contracts for Difference. Foreign Exchange Trading also forms part of their extensive services.

Article Source: ArticlesBase.com - Why Gold Should be Part of your Stockmarket Portfolio

Dramatic Development of Gold Markets Over Last 8 Years

Author: tristass

Dramatic development of gold markets over last 8 years

Gold has always had its place in many investor portfolios seen as a sef bet carrying intrinsic value. But the precious metal frequently returns to the spotlight in times of financial turmoil. In our latest BizChina 360 series, we look at gold China, its fledgling market, its production, and investment.

Our first installment, we look at dramatic developments over the last 8 years.

In 2007 China became the largest gold production country in the world-toppling South Africa from a position it had heldfor over a hundred years.

It's an exciting new century for China's gold market. That's because in 2007, China became the largest gold production country in the world-toppling South Africa from a position it had held for over a hundred years. China's gold consumption also grew multifold, and now ranks 2nd globally. And experts such as precious metals consultancy GFMS limited are confident, that the positive trend will only continue.

Philip Klapwijk, Executive Chairman of GFMS Ltd. said "The China market in 2008 will probably be the world's largest physical gold market, supply, demand, consumption. China will be the world's largest gold market in 2008; that tells you the significance of the China market."What may be even more startling is the fact that it has taken less than a decade for the country to get here. Previously, gold was managed under the old system of "unified purchase and allocation", and was strictly controlled by the central government. The development of the gold market was stagnant, at best.

But 2000 proved to be a pivotal year. Everyone in the gold industry hailed the Chinese government's move to include opening up the country's gold market in its 10th five year plan. The basic goal was to gradually loosen control of the market by establishing a new system for gold production, circulation and healthy consumption through market dynamics.

Gu Wenshuo, General Manager of General Office of Shanghai Gold Exchange said "The reform of the gold market was very critical. That's because gold represented not only a commodity, but also a financial function. It was also related to the country's gold reserve, and many other issues. As a result, China focused on reforming its gold management system. Under those circumstances, we did thorough investigation of the market conditions, and learned from the experience of other countries. On such basis, the State Council ratified the People's Bank of China to establish a gold market to adjust gold resources."So at the turn of the millennium over 20 years after China began to shift towards a market economy, the country finally launched its market reform for the gold industry.

The first step was establishing the Shanghai Gold Exchange, which formally opened for trade in October 2002. For the first time in China's modern history, the country's gold price was fully determined by the open market.

Enterprises were no longer confined with limited volume. They were free to buy or sell gold through the exchange, and at a price that was determined by the supply and demand of the precious metal.

The opening up of the market injected vigor into China's gold industry, and significantly boosted development of mining, manufacturing and investment, and many other aspects. But there was a catch. In the early days, the Shanghai Gold Exchange was offering only spot transactions. As a result, most of the market players were gold miners, jewelry merchants, and other entities engaged in the gold industry. Gold investments such as gold future products were not available. In contrast, 97 percent of the worldwide gold trade was gold futures. So-that led to more development. "But it was not until 2004 before the country came out with more clear guidelines to develop the gold market. Speaking at an international gold summit that year, China's central bank governor Zhou Xiaochuan spelt out 3 targets for the sector, applauded by many industry insiders.

Liu Yuning, Senior Vice President of Jingyi Gold Co., Ltd. said "The central bank governor Zhou Xiaochuan said the yellow medal should evolve from a solely consumable to investment product, while its trading should change from spot transactions to gold derivatives and move from domestic markets to overseas. From 2003 to 2008, we can see gold transforming into an investment product. When we talk about gold, many will now not only think about gold jewelry, but paper gold and gold trading at the exchange."For the second target, there have been a lot of changes undertaken through years. After research and preparation, the Shanghai Gold Exchange first launched T+D products in 2004, (which allow investors to bid first but delay the spot transaction of real gold), as a stop-gap to gold futures. The breakthrough came in January 2008, when the Chinese Securities Regulatory Commission ratified the Shanghai Futures Exchange to launch gold futures products.

Li Wenfeng, Trader of Huaxia Bank said "The move has significant meaning. China ranks among top gold producers, but has little impact on gold prices. The launch of gold future is an important complement to China's financial system. If we further relax controls on gold import and export, we will have more say in pricing the precious metal. Gold future is a good start. For individual and corporate investors, it is a new alternative."Another important step has been combining the domestic market with the global gold market. The People's Bank of China gave the Shanghai Stock Exchange the go-ahead to include 5 locally incorporated foreign banks in its membership this June. The Standard Chartered made a Chinese-style debut on August 8th by trading 88 kilogram gold at the Shanghai stock exchange. It hoped the 4 "8"s will bring luck to its future development in China's commodity markets.

And with current economic climate in such a turmoil, gold has never looked better.

Wang Lixin, GM of World Gold Council of Greater China said "With the increased income level of the population, with more mature of the gold market, with more products availability in the market place, in terms of the unstable financial market and a weaker US dollar, maybe some concerns about the global currency. We believe consumer will have the interest to buy gold.""I am now at the People's Bank of China, which serves as the only management of China's gold system. However, it has now taken off from here to evolve into a very robust market. Many would say recent developments in China's gold market has been staggering. People may ask how has this happened so quickly? Many credit the country's macro-economic environment: China's opening-up policy. The question now is, can it be sustained? Even though experts are bullish about the country's future gold industry, China's increased integration with the global economy does make it vulnerable to its highs-and its lows. But the fact that more and more people are turning to gold as an investment channel could spell an even brighter future for China's gold industry. "

About the Author:

http://www.cnmining.org/news/?id=255

Article Source: ArticlesBase.com - Dramatic Development of Gold Markets Over Last 8 Years

Bullion Trading

Author: Kevin Huffman

Bullion trading encompasses gold, silver, precious metals and associated products which are traded through over-the-counter bullion trading platforms .US already has many decentralized units splashed all across its territory which enable bullion trading. Few countries have become price makers and left the tag of price takers far behind the toe-line. This is amply exhibited by how these countries are reacting today through the ever looming recession, focusing chiefly on bullion clouding.

The oil prices have led to the hottening up of bullion trading and it seems that drying liquidity and cabinet proposals may look to be instrumental for bullion market in recent future.

Domain expertise and best global trading practices help in setting price lines for gold trading with the most precise pricing mechanisms followed over the counter in most of the bullion trading countries.

Bullion trading requires a meticulous centre for hallmarking that can facilitate the procedure of setting gold and silver prices in accordance with the top systems. For instance, South East Asia looks up to the AM/PM system in London.

The concept of Spot gold has been traveling all through the arc of western bullion market. Spot gold trading is put forth for settlement two business days from the day of trade. Here, business day is defined as a day when both London and New York bullion exchange are open. Supply and demand theories do not move the gold market that much. It’s the interest rate differentials along with spot prices which are instrumental in freezing and melting the bullion market. This determines the volatility or the lack of it as far as gold price movement is concerned?

Interest rate for gold is obviously below intra country interest rates. This is so precisely because it would encourage gold borrowing and let the central bank monetize in chunk through their colossal gold holdings.

Today, bulk of gold and silver trading is done at the over the counter market. An optimum chunk of bullion trading is also done over internet medium.

Also, the banks are promoting the purchase of gold and they are trying to lure retail investors with handy perks to speed up the process of gold sale

About the Author:

http://bullioncity.com

Article Source: ArticlesBase.com - Bullion Trading

Gold and Silver Trading-know These Before You Want to Trade on Metals

Author: Sunny John

Gold and silver trading has become quite obvious alternative especially with current volatile situation of stock markets. Although it is a great option for diversifying your investment portfolio, before embarking into this world you need to be as cautious because the market is just not stable.

First of, if you are contemplating on gold and silver trading, you need to open a trading account with any spot trading broker. This account will help you to buy and sell gold online with the hope to bring home some decent profits. So said, the market is again filled with scammers, thus it is important to stay informed before you choose a gold and silver trading broker. Here are some key points that you should consider before selecting a gold trading broker

Well informed- the broker should be knowledgeable on the variations of the yellow and white metals and be equipped with the usage of several trading tools such as relative strength index, moving average, divergence and other statistical models to analyze as well to determine the volatility of the same metals.

Cost effectiveness- while you decide on selecting a gold and silver trading broker, it counts very much. The broker should divulge all kinds of costs including additional service charges that are associated in carrying out the transactions. One should always look meticulously into details and read between the fine prints to avoid end up paying more due to ignorance.

Add-on benefits- check if the broker is providing with fringe benefits as you sign up with the services.

Availability of the broker- the broker should be available 24x7 anywhere, so you can reach out without much problem. Additionally, the broker should be in a position to accept online payments in the most secured and safe manner.

Responsiveness- the most important virtue while selecting a gold and silver trading broker is his responsiveness. Gold and silver trading being a volatile market, alacrity is very essential on part of the broker to execute transactions decisively and instantly. Apart from alacrity, decision-making ability of the broker should be strong too. However, honesty and integrity should be inherent with the broker to offer quality and effective services. Credibility and reliability of the broker can be checked through some online browsing.

Additionally. Gold and silver trading forecaster will deploy appropriate trading tools as well as tries to balance equity management in the trading. Only of the broker is sensible that he will detect the smallest of the fluctuations within the market and he can forecast with accurate signals to his investors. Basically, he is one who knows all rules of the game and will not fowl play.

While choosing an online gold trading broker, you need to bear these points in mind and ensure that you sign up with a person who can take you through profits not one who will rip you off.

About the Author:

Only an expert broker can give you accurategold and silver trade signals and can help investors achieve success in the online metal trading. To see the various tools and operating modes of agold and silver trading forecast

Article Source: ArticlesBase.com - Gold and Silver Trading-know These Before You Want to Trade on Metals

Get Started With your Gold Investments

Author: CoinsBullions

Gold investments are the best way to consolidate your investments as they are well known for fixed market value that does not depreciates in a volatile way in comparison to stocks. Incase you are looking for investment opportunities; make sure you go for gold investment that helps you in getting the best value for money. Given the market value of gold and its stability over money investments, gold can offer huge financial returns and true vale for money. It is seen that gold has survived monetary collapses while sailing through swiftly in the bullion market. This makes gold stable in comparison to stocks and shares where the risk of losses is much high in comparison of profits.


However, if you want to go forth with gold investments, make sure you invest in gold coins as they offer instant liquidity solutions. Apart from liquidity solution, gold coin investment rules both the national and international markets. It is seen that gold bullion investment is the most lucrative and sound investment in bullion market as many investors try to incorporate gold stocks in their portfolios. However, if you are planning to dabble in stock of gold as investment, make sure you have a thorough knowledge about bullion trade and its market practice.


While making gold investment, try to gather as much information about bullion trade. This will definitely help you in making a sound investment. It is seen that investment in gold jewelry such as necklace, rings and other things is not as sound investment in comparison to gold coins and bricks. Gold bricks and coins are secure investments and help you in increasing your profitable bullion trade career. However, in order to get started with gold trade portfolio, you have to start collecting gold bars and coins. This will definitely give you an edge in trading policies. The benefit of trading in gold bullion trade is the fact that gold investment does not get effected by the falling paper currency. Therefore, if the trade market faces crunch and money value topples, your gold will remain virtually unaffected to the falling price by providing you an option of stable liquidity. Therefore, given the benefits of gold investment, gold coin sale can offer you a plum and lucrative trading practice that helps you in getting good money in exchange of gold. During increasing sensex, gold prices automatically increase and offer huge dividend on its sale.


So, given the amazing benefits of gold trade, if you are into bullion trade or deal in gold investment, you will definitely have an edge over other portfolio owners as bullion trade is more lucrative in comparison to other portfolios. In comparison to $ US, gold has show a strong position that makes it an important investment. Well, keeping all the above things in mind will definitely help you in making the best investment solution. Buy Gold as investments which are more profitable than real estate ventures as economical recession can take the toll of market price however, in gold investment; it remains untouched by any market condition.

About the Author:

Inventory of Coins and Bullions Include many types of Bullion Coins like American Gold Eagles, Gold Bullion Coins and bars. In the future, coins and Bullions will expand by including jewelry and gift items.

Article Source: ArticlesBase.com - Get Started With your Gold Investments

Wow gold trading

Author: julia

In my opinion, earning wow gold is a great thing in the world of wow. I have earned much wow gold but no end to desire more. I have played many years and made many friends in it too. They are all super players.

How to make more cheap wow gold? We need tips and a good site to buy. There are so many companies online you can find. Yeah? There are also some sites supporting trading in wow. So many players are searching partners and trading each other.

Normally, this wouldn't rate too high for us -- lots of people have ideas about how to use World of Warcraft, and many of them never actually come about. But then again, this is in the Wall Street Journal of all places, so we'll give it a look. If you're on Twitter, you've probably heard about what's going on in Iran right now -- there was an election, the "official" results given were judged as rigged by many involved, and the government seems to be cracking down on both news media and citizen journalism, as well as protesting citizens, to very sad results. How to make more cheap wow gold ?How does World of Warcraft fit in to all of this? Andrew Lavallee of the WSJ's Digits blog points to this report by Craig Labovitz, which talks about how Internet traffic has been filtered out of the country around the election. At the very end of his analysis, Labovitz points out that channels for videogames, including both Xbox Live and World of Warcraft, have shown very little government manipulation. That suggests that if the government in Iran does continue to shut down certain channels, citizens there might be forced to spread the news through any virtual route they can, including possibly Azeroth.

I am waiting for you to leave me message and talk about wow gold together. I want to make friends with you all. Tell me some sites supplying cheap wow gold please. I know a site. It is called ugamegold. You search on google.

About the Author:

Article Source: ArticlesBase.com - Wow gold trading