Author Archives: Kendra

Futures Brokers – Finding a Credible Futures Broker

On the off chance that you need to exchange items or money related instruments then you should locate a valid prospects intermediary. They give you with a way to you to purchase or offer products and money related instruments at a future time at a specific cost.

Future specialists work twenty four hours a day, six days a week. They must be in fact authorize to bargain in prospects. A large portion of these intermediaries require a base store to open an exchanging account. The base stores differ from representative to merchant yet all require a particular sum in the records.

Most fates dealers are paid on commission. This is ascertained by the volume and recurrence of exchanges made. There is typically a base commission assigned per exchange so comprehend what these base expenses incorporate.

It is useful on the off chance that you comprehend the item you plan to exchange to give yourself an aggressive edge. Your prospects intermediary will prompt you on current conditions, showcase patterns, world economy and different components yet in the event that you comprehend your exchanges it will help in your venture returns and decrease a portion of the hazard connected with exchanging.

On the off chance that you are not an expert in a specific item or budgetary instrument then it is astute to take the counsel of an authorize full administration fates business firm instead of making hypotheses. These prospects agents have the experience important to comprehend patterns and developments inside business sectors to position your exchanges legitimately.

Commodity Futures Trading – An Overview

Fates exchanging are the exchanging of future contracts. Item future contracts will be contracts made to exchange the basic products some place later on at an altered rate, for the most part in the present day rate. Like stock exchanging, prospects are exchanged particular concentrated exchanging markets like S&P and Globex. As of late, there is a tremendous increment in the quantity of brokers exchanging prospects contracts. This can be of numerous reasons as

1) the effortlessness of exchanging empowering for all intents and purposes any one to exchange,
2) high liquidity introduce in the market because of the enormous volumes of exchanges done exceptionally day,
3) the strength of the market contrasted with others,
4) simple to claim basic ware – can purchase an expensive item at lower costs at the season of agreement,
5) low commission rates contrasted with exchanging hidden prospects stocks,
6) the capacity to exchange from home with lessened working capital,
7) bring down introductory speculation required,
8) the accessibility of smaller than expected prospects requiring less record essentials and having thin spreads, and
9) the nearness of an assortment of fundamental items exhibit on market.

There are primarily two sorts of fates exchanging contracts accessible in a fates showcase as those require a physical conveyance and those require a money settlement. The agreements which require a physical conveyance are known as ware prospects and incorporate fates for farming items like rice, wheat, sugar, oats; vitality wares like normal gas, unrefined petroleum, warming oil and others, for example, creatures, wood and so on. Fates contract which require a money settlement are known as budgetary prospects and include treasury notes, securities, shared assets and so on. The purchasing of fates, in the ware fates market, is known as “going long” and offering the prospects is known as “going short”. As indicated by the exchanging style took after, online fates brokers can be comprehensively arranged into two as hedgers and theorists. Hedgers are brokers who exchange for value assurance. Typically they are the guarantor of prospects contracts, who do as such to handle the potential misfortune at the genuine exchanging time of the fundamental ware. Theorists are the genuine brokers purchasing, holding and offering these agreements for benefit. Examiners incorporate a wide range of dealers; arbitragers, informal investors, swing brokers and position merchants. Each Futures exchanging require a fates exchanging representative or fates commission trader (FCM).

How to Use Scale Trading in Futures and Commodities

Scale trading is a popular style of trading system which based on the idea that there is a limitation of how low the price can go. The scale trading technique tries to make profit from a market that is at historically low price levels.

There will always be demand for commodities, such as oil or gold, at some price. That is the difference between commodities and financial products, such as index futures or stock futures, which are paper assets with no real value and can be subject to devaluation. Therefore this technique is suitable for commodities trading.

Normally, traders who use the scale trading as their trading system do the following steps.

  • Find a commodity that is trading near its historically low price level.
  • Set up the scale trading plan. For example, when trading oil, a trader may start buying at $40 and buy more contracts every $2 down. Hence, the others buying prices are $38, $36, $34 and so on.
  • Whenever the futures contract reverses and eventually rallies, the trader begins to take profits on the contracts. For example, if the oil goes down to $33, trader will hold 4 contracts at the prices $40, $38, $36, $34. When the price rise to $45, the contracts acquired at $34, $36, $38, $40 would be sold out at $36, $38, $40, $42 respectively.
  • Repeat the steps over and over.
  • Some expert traders might also try to use this trading technique in forex or any other markets than commodities. However the scale trading technique need large amount of trading capital and the well consideration of market timing. If not, traders could be blown out.

    Trading in Stocks

    A Safe Bet

    Trading in stocks and shares is the best option for those who do not have sufficient funds and experience for doing any other business. You can start small, dream big and finally reach the stars. The initial investment can be ludicrously small. In fact ‘investment’ is too big a word for the amount of money you require to start trading in stocks at the initial, learning and experimental stage.

    Minimal Investment

    You can start with the cost of a pack of cigarettes or the price of a cup of coffee. All you need is a personal computer and an Internet connection. Surf through the net and you will find that there are hordes of online stock brokers. Read through their sites and decide on the one that suits you best. You can open your account online at free of cost. Besides, you will find the necessary instructions at the website to set the ball rolling. Tread the ground cautiously, have patience and try to learn as much as you can the new lingo of stock trading from the education tab of your stockbroker’s website.

    Education in Stock Trading

    The education section of your stockbroker’s website provides comprehensive details about various aspects of stock trading. Starting with the definition of a stock, the reasons to buy stocks, investment risks, types of investments and ticker symbols, the instruction material further explains how the stocks trade, the stock market, the primary and secondary markets, the major stock exchanges like the NYSE, NASDAQ, AMEX and OCTBB for Penny stocks. Once you are familiar with the basic functioning of the financial market, you will begin to understand the factors that drive the share prices such as supply and demand of the stocks and shares that you trade in. You need to understand the concepts such as ‘earnings per share’ and P/E ratio. The knowledge of these basic concepts will help you to evaluate the price of the stock of a company and its income potential.

    Cautious Beginning

    If you are a novice to the art of trading in stocks, your first step should follow the guidance of your stock broker. Become acquainted with the terminology associated with stocks such as bulls and bears and what they signify. You should also be familiar with the research tools and research reports that highlight the financial performance of the company you are interested in investing in.

    If the price of your stock goes up, and your broker asks you to sell it and book profit, it is in your interest to do so. Do not be greedy and wait for your stock to touch the skies. The wait may become interminable and you may be stuck up just in one stock and will not be able to move further. Who knows the value of your stock may plummet in future and you are left wringing your hands in despair. It is always advisable to be dynamic, keep moving, changing, experimenting and learning. Since the initial investments are small, the risks can be affordable. Once the fundamentals are clear, you may shoot for the big.

    Commodity Markets Trading With Technical Analysis

    Commodity trading is best done with the help of technical analysis. Technical analysis shows a trader the direction; he should take while dealing with commodities. Whether one should buy or sell is best determined with the help of Technical Analysis. A good trading system will always incorporate methods used in TA within itself.

    Technical Analysis Defined

    The process of determining the condition of a commodity (based on the historic price) with the help of charting is called Technical Analysis. It combines probability mathematics and statistical information to determine the future price movement of a commodity with probability on your side. For example, if someone were to walk up to a door, and you were told to guess which direction they would go – left or right, whatever you chose, it would be speculation. On the other hand, if they went left, and you followed them, that would be called trend following. Similarly, if a commodity future moves in a direction and you use TA to guide you, you can buy it after it shows a move into a certain direction, and a trend has been confirmed.

    Uses Of Technical Analysis

    There are many ways TA helps traders in trading commodities. The primary principle in TA is to have the ability to follow trends. To be able to do this, one has to be able to catch it early enough. So, you can buy into a commodity if you can confirm that it is in an uptrend. The key point to remember is that TA assumes that price discounts everything.

    All movements of market participants are reflected in the price of any commodity at any given point in time. The idea is to buy low and sell high, or vice versa. This sounds simple in theory, but is difficult enough in real life. Imagine knowing that the probability of a commodity will breakout on the upside, but also that it is only a probability, and not a surety.

    How Do We Use Technical Analysis?

    TA has many different theories. These include common theories and indicators such as moving averages, Fibonacci series, oscillators, Gann theory, Elliot wave theory, and the age-old Candlestick theory from Japan. Many users tend to combine one or more of these theories to get greater accuracy in determining the trend more correctly in their favor. One has to remember that probability needs to be on our side.

    The risk to reward ratio should always be in our favor. A lot of people use TA to help them establish a trend, get the point of a breakout and look for a point to buy or sell a commodity. They also use it to determine their stop-loss, and possible target price. This is an advantage that TA has over any other form of analysis. Being mathematical in nature, it gives you exact figures as to what levels you need to enter and exit a commodity.

    Transportation Management System: Choosing a Logistics Resource

    For the average shipper, the cost of freight transportation is second only to the cost of payroll. Consequently, when a shipper needs to increase its bottom line, reducing the cost of freight transportation is one of the first considerations. There are two keys to achieving a cost-effective shipping process: the correct selection and correct management of shipping arrangements, both of which require a logistics resource. There are three types of logistics resources for managing a shipping system:

    • In-house logistics department -A shipper that operates its own fleet typically uses this resource. Due to the capital required to maintain the department, implementing a logistics department is often unfeasible for small and midsize shippers.
    • Third Party Logistics (3PL)– Also known as freight brokers, 3PL providers negotiate shipping arrangements between shippers and carriers. 3PL can be less expensive than maintaining a logistics department, but it still involves paying logistics professionals.
    • Freight transportation software– Freight transportation software can supply the logistical solutions that are traditionally supplied by a logistics department or 3PL provider. From a cost perspective, freight transportation software is the most economical logistics resource.

    With the emergence of Software as a Service (SaaS) solutions for the shipping industry, the popularity of logistics software has increased. The software can also be implemented on an in-house model, but implementing it on a SaaS model eliminates the costs of installing and maintaining in-house software.

    The Goals of Transportation Management

    Positioned between the Enterprise Resource Planning (ERP) system and the shipping process of a company, a Transportation Management System (TMS) has three goals:

    • Plan the shipping process, including carrier and transportation mode selection, rate selection, and load and route optimization.
    • Monitor the shipping process, including cost control, quality control, and tracking of vehicles along the shipping route.
    • Measure key performance indicators, including monetary productivity, cost per metric, and percentage of on time deliveries.

    These goals can be accomplished by an in-house logistics department, a 3PL provider, or with freight transportation software. As it considers these options, the shipper must consider how much it needs to economize on the logistics resource, and whether it wishes to manage the shipping process, or have it managed by another party.

    As mentioned above, freight transportation software is the most economical logistics resource. It is also a resource that puts the shipper in control of the shipping process, something that 3PL does not do. For businesses that wish to outsource the shipping process, 3PL is the ideal choice. For businesses that wish to manage the shipping process without creating a logistics department, freight transportation software is the best choice.

    Conclusion

    A transportation management system is an integral subset of supply chain management, one that influences the cost and quality of the shipping process. Logistics software provides shippers with a way to manage freight transportation economically, without sacrificing management quality. To learn more about the benefits of freight transportation software, contact a provider of SaaS logistical solutions today.

    Investment Management Training

    In the early period of development of finance as a profession, i.e., until the early 1950s, investment management was primarily concerned with the procurement of funds. The subject matter was mainly confined to financial problems arising during episodic events like incorporation, merger, consolidation and reorganization. Thus, the traditional role of the investment manager was to raise externally the funds required by joint stock companies. The internal administration of finance was either ignored or dealt with by the promoter entrepreneur himself.

    With the passage of time, the role of investment manager has undergone drastic changes. Presently, the investment manager is in charge of determining the total amount of capital required for both the short-term (working capital) and long-term (fixed capital). This is done by proper forecasting and planning of finance. Secondly, their job profile includes investing the funds in assets and projects, with the aim of making profits. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

    Now the investment manager is concerned with the management of assets, raising and allocation of capital, and valuation of the firm. Besides, he has to ensure the supply of funds to all parts of the organization, evaluate the financial performance, negotiate with bankers, financial institutions and other suppliers of credit, and keep track of stock exchange quotations and the behavior of stock price.

    To play his role well the investment manager has different tools, such as cost of capital, leverage, capital budgeting, working capital management techniques and fund flow analysis/cash flow analysis. Cost of capital helps in deciding the appropriate source of finance. Normally the sources with minimum costs are selected, so that the weighted average cost of capital can be kept to a minimum. Capital budgeting helps in deciding the proper investment mix; the available resources should be used in the most profitable way. For this purpose, suitable projects should be selected from alternative courses by using capital budgeting techniques.

    Common Terminology in Futures and Commodity Trading

    Commodity Markets

    A commodity market is a market where generic movable products are bought and sold with contracts. Examples of commodities are: corn, wheat, coffee, pork bellies, cocoa, soya beans, oats, live cattle, crude oil, natural gas, gold, silver and so on.

    Contract

    Buying and selling of commodities is done with contracts. These contracts state exact rules, including descriptions, quantities, unit price, and delivery times.

    Trading

    Trading means buying and selling contracts.

    Futures trading vs Commodity trading

    Commodity trading and futures trading is the same thing. When you are trading in commodities you are trading in futures.

    The Commodity Exchange

    Commodity exchange is a central place where the buying and selling commodities take place. The biggest commodity exchange in the world is he Chicago Board of Trade (CBOT). There are also quite few around the world.

    Mini-Contracts

    Trading mini-contracts is an alternative to trading standard contracts and is smaller in quantity, ranging between one-fifth and one-half the quantity of a standard contract. Mini-contracts are traded in Chicago on the MidAmerican Commodity Exchange (MidAm).

    Standard Contracts

    Standard sizes of futures contracts are most of them related to the specific product. Example:

    – a contract of corn has 5,000 bushels

    – a contract of gold has 1,000 ounces

    – a contract of lumber has 160,000 board feet

    Contango

    Contango describe the carrying costs inherent in different price months for the same commodity. For example a commodity to be delivered in eight months has more overhead costs (due to storage price) compared with a commodity be delivered in two months.

    Trading Months

    Every commodity has specific trading months and is not all the same. For example: Crude oil has trading every calendar month. Soya beans have in January and every second month.

    Spot Market

    It is also known as the cash market in futures which means delivered and paid for “on the spot” or immediately.

    The spot month is the present month.

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    Stock Market Trading

    Stock Market Trading: On A Share

    The cult of share traders is bringing a stock renaissance. Traditionally, it was known to be the rich man’s land but with the changing times and unearthed circumstances, it soon tuned into a field for common man and small investors. Heartiest wishes to the stock market that it revolutionized so quickly with the supporting sticks of technologies including online investments and channels like CNN.

    The incidence of stock market trading is showing a risen trend all over the world. Underlying increasing knowledge coupled with a shifting trend of investment from savings are some of the main reasons for this melody. But, you do not hear about these traders making more and more money in the stock market. Few of them actually know the reason and have the skill to make profits in stock trading.

    Investing hard-earned money takes a lot of courage and when it comes to generate more out of the invested one, it gets to the tough tunnel. A tunnel that is darkened with the risks and frauds, however, it can be rescued only with due care, knowledge and alertness.

    Stock market trading basically begins with basic understanding of stocks. Literally, stocks are the shares of the companies that provide partial ownership to the buyer of a particular stock. It acts as a devise for the investor to earn money in form of dividends and a tool for raising capital on behalf of the company. Stock is traded on stock exchange that is a forum where all the companies are listed that may deal in stocks.

    Undoubtedly, like any other markets there are many catalysts that provide services for easy trading of stocks. For stock market trading, they are the brokers that act as mediocre between stock exchange and traders. Not only, they are the service providers but also provide their expertise and tips to trade in stocks However, today there are many companies that are catering as stock broker firms and facilitating stock market trading through discount brokerages.

    Also, their quick and reliable services tend the trader to self-trade in stocks. Stock brokerages has transformed to online stock broking that helps the trader to posses user-friendly and hustle- free services that allows a person to trade from a place of his choice.

    Trading in stocks is not an easy job, but with the help of few tricks and tips one can be more assure of his positive returns. Here are some tips you should look out for to trade in stocks:

    • Hedging: it is considered to be one of the safest techniques for investing in stocks. In case you wish to protect your position and reduce the risk, holding a stock for longer duration is recommended. It reduces the risks of immediate swings of the market and provides you with option of increasing price of stock.
    • Dow average: this is another option that may be followed by any stock investor. Buying the best value stocks after measuring it on Dow industrial average turns out to be safe. It is said that the lowest 10 on the Dow posses the most potential for growth in the future market.
    • Dollar cost and value averaging: investing a fixed amount of dollar on a regular basis is known as dollar cost averaging. It reduces the risks and may let you purchase more number of shares when prices are low and vice versa. It not only fixes the amount of risks but also provide a consistency to the trader’s portfolio.

    Commodity Trading Tips, Golden Trading Tips and Guidelines of Do’s and Don’ts in Commodity Markets

    Historically, commodity trading has delivered the biggest fortunes worldwide. It originated centuries ago, even before the stock markets came into existence, albeit traded then in a different manner, than as seen today on electronic exchanges. I have often quoted that ” If trading in the speculative markets, then Stocks & Equities is for boys but Commodities & Forex is for men” (No gender bias intended). Wealth creation is not a matter of chance. It is a process that needs sharp analysis & a lot of work time. Plan your play and then play your plan. Happy investing!

    The similarity in Stocks & Commodities begins & ends at the point that they are both speculative trade markets, but there are a lot many differences in both these markets. Unlike the stock markets where even a highly valued stock could eventually see all it’s commercial-value being eroded due to several reasons, the values of commodities may see corrections on a large supply but eventually will only increase again with time, as the inherent imbalance in the demand and supply ratio would always favor demand more than supply due to many influencing factors like growing populations, rising economies and better lifestyles to name a few. All adverse scenarios like geo-political tensions, wars, climatic imbalances, catastrophes and other man-made disasters, etc. which pull the stock markets down generally push the commodities up (especially Agro-Commodities & safe haven instruments like Gold), basically due to the differentiating factor that these commodities generally are also regular necessities to normal life and not simply investment instruments. Most Commodities are traded globally & the price rigging in these is next to impossible unlike, as seen in a lot of equity instruments where manipulation is a lot easier & occurrences of traders getting duped are rampant.

    Massive wealth creation is possible through Commodity Trading & Investments if done the right way & with a lot of strict discipline. But if done the wrong way, which is generally the most followed path, there will be enormous losses also. You can start off equity trading or investment with smaller sums of money, but would require deeper pockets to be able to do some modest trading in the Commodity Exchanges & also to sustain the “Mark to Market” volatility in the Commodity Markets. The gains & losses in both also become proportionately big or small eventually. I would now like to highlight some basic Do’s & Don’ts for the most frequently seen habits & maybe unknowingly committed mistakes, which I have noticed in most traders & had to address to a number of times as a Market Analyst & a Commodity Market Trade Advisor.

    1] Do not trade with hesitance, half heartedly or in over confidence. You may incur small but repeated losses if you are scared of the markets or heavier ones if you are overtly brave and foolhardy.

    2] Be patient when your trade positions are moving in the right expected direction to extract maximum gains and ensure the gains by improvising the stop-loss level, time and again. Do not be pessimistic here or else you may book gains pre-maturely & may later repent on exiting early. This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at small reversals in panic, which in turn would erode earlier small gains & also build losses. It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong & that makes all the difference between Winners & Losers.

    3] Do not be over optimistic when trades have hit the suggested stop-loss levels and make sure you exit there. You may miss better and multiple opportunities on being stuck in deals gone wrong leading to higher and higher losses each day.

    4] Do not discuss your open positions with one and all. This will lead you nowhere and confuse you more, as all would air their own views on the same (whether knowledgeable or not) and many a times, would make your trade decisions seem as foolishly and hastily taken. If only you would have consulted them earlier…

    5] Do not develop a tendency of being a Bull or a Bear in these markets. There is only one side to the markets and that is neither the Bull side nor the Bear side – But ONLY the Right Side at the Right Time. Trend is King, so follow it at all times.

    6] Realize that you are in a bad situation and exit fast when you need to pray for relief at each rise or fall in a trade which is leading you further in a deep pit towards heavier losses.

    7] Follow ONLY one Analyst’s or Technical Advisor’s guideline at a time, as more guidelines will again create a lot of confusion. You can opt for or look out for an alternate guidance when the earlier guideline proves to be less productive or loss making, but not simultaneously.

    8] Be honest to yourself as hoping or praying for something different, than the actual reality or situation is nothing less than fooling your own self.

    9] There is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight, as assured by many to win a prospective client. YES, there are sizeable gains and high returns for a disciplined trader and may return exactly the opposite, if not worse, for the non-disciplined. Do not enter this trade market under any illusions of getting to be a Billionaire overnight. It will never happen. In fact all that you now possess may also be lost.

    10] DO NOT BORROW or trade with funds that are not yours or pump in more funds by borrowing to hold on to loss making trades. Trade only with own funds that are spare-able and be prepared mentally in losing even that in totality, in the worst case.

    11] Never trade or enter / exit positions in panic. Volatility is a non-separable component of this trade market and will be present most of the times.

    12] Do not be a party to rumors or be guided or misled by these. Verify & double-check on the source for genuineness.

    13] Stay away from the people who have a habit of saying “I had told you – See now?”. These are the very same people who would never put anything on paper or ever trade on their own views- with their own funds, as in reality they do not have any concrete views or knowledge. They are mere sponges on an ego trip, who keep soaking or gathering tidbits of information from anywhere available irrespective of their reliability, put all together and spread the newly formed news. If what they say goes wrong, they would disappear and would be seen nowhere or if found, might now have some stronger views and reasons for why the wrong happened as generally these kind of people are very good convincers & are blessed with the gift of gab. Listening to these characters and their views is very dangerous. As the wise always said: – “Half knowledge is always the most dangerous”, “Ignorance is Bliss” and “Blessed are the fully knowledgeable”.

    14] DO NOT TRY to be the TREND SETTER or the first one to know where a particular trade will turn from. No one can possibly be, except by a sheer matter of chance, the best seller or the best buyer – so why try it? You might end up losing a lot of money and also becoming the laughing-stock for all. Follow the trend and make respectable gains, “Quietly”.

    15] Do not enter the Commodity Markets with Stock Market trading ideas. Though both are speculative trade markets, there is a substantial difference in both and generally have opposite trading patterns and thumb rules, as elaborated earlier.

    16] Providing past performance records is not a mandatory rule for Analysts or Advisors, and the same info (wherever posted) can be misleading, as the same can be manufactured by the end of day to dupe prospective clients. Do not try to look for something that can misguide you & lead you on the wrong path, ending up in losses – money-wise & also confidence-wise. Upon subscription by the trader, the same people showing fantastic results on their websites, but performing poorly in real-time, may later not be available even for a discussion or may later say that “Past performances are not an assurance of any future success”. So take a Trial for a fortnight or a month (not for a day or two), do some live paper trading & only trust the live performances. Judge the genuineness of the research quality and real-time trading support only on the basis of live experience and not by past performance records. Most of these records could be fakes. Better to pay for the Trial & come to the right conclusion, rather than loose a lot of capital by trading on faith generated by looking at & getting impressed by the past performances.

    17] “Trading without a Stop-Loss & yet making gains is sheer Talent – Not trying such stunts is Intelligence”. The stop-loss practice is for your own benefit as this provision has utmost importance and is not provided on each trading ticket by the exchanges, just for the heck of it. If the trades turn & move in the opposite directions beyond entry levels, they might further move very fast in a volatile manner & the losses accrued, in the absence of a stop-loss, can be un-imaginable. There are several things happening across the globe constantly, which affect the price movement, direction & volumes in commodity trading, as basically they move in accordance with demand and supply situations & are also greatly affected by the Geo-political scenarios all over. It is not humanly possible to track each & every occurrence, watch out for economic data’s released all around the globe and understand the level of their impacts on the trade movement & direction of all commodities, though you may be constantly updated on most of the developments, most of the time. Many times the reaction or the impact of these developments is so quick & enormous, that large & rapid movements in rates are instantly triggered with high volatility, even before the news on these developments reach all over the world. In such a scenario, you may never know as to what level these trades could go to & the losses (though sustainable by a few) may be very large. These losses are not the only losses that you incur if caught in such a situation – you also miss out on the opportunity, the same commodity is offering, in the opposite direction and also by other trades as most of your attention and funds will now be concentrated and caught up on this particular trade gone wrong. Remember – Growing wealth is important, but safe guarding seed capital is even more important. It’s easier to resist & also absorb losses at the beginning than later.

    18] Averaging in loss making positions is a practice which is most commonly seen & generally leads to more dangerous losses. This is also recommended by a number of advisors, but I certainly do not recommend it. In fact I strongly oppose it. Remember – YOU are incurring the loss & not your advisor.

    19] Putting all your eggs in one or a couple of baskets could prove to be more dangerous for the day trader. Having a wider investment or a trading spectrum would be more effective. All entered trades may never go wrong simultaneously but a stray one or two could and what, if you have traded in only those? It may also happen that the 1 or 2 trades that you have entered into, have moved in the right direction, but have not achieved the expected high results or gains in comparison to the ones you have left out. So it is only advised and not stressed upon – that the trader should take positions in a wider range of trading / investment opportunities to achieve better results.

    20] Do not be biased to a particular commodity. Look at all commodities (having healthy trading volumes) only as profit generating opportunities & not at the English name or Social status of the commodity.

    21] Always remember -“You cannot use yesterday’s ideas for today’s business and expect to be in business tomorrow”. Be ready to accept and implement change immediately and constantly as “Change” is the only factor that’s constant in the world – everything else keeps changing and its meaning is all the more true in these highly volatile and ever-changing market scenarios.

    Adherence to the above is sincerely recommended to trade and achieve gains in these ever volatile Speculative Trade Markets.