Build Wealth Through Commodity Trading

Simply stated, commodity trading is the investing into any commodity. Gold, silver, corn, wheat, soybeans, orange juice, gasoline, etc. are known as commodities. These days, commodity markets have become a common phenomenon. Future trading in commodities is the process of speculating on the future price of a commodity and the activity of "buying" or "selling", based on your speculation, with or without actually owning these commodities.Unlike usual trading, futures traders do not actually own anything. Future Trading is investing one's money on the anticipated price movement, subject to a specified period.For a layman, futures trading seem to be a risky proposition. The fact is that futures trading can be as risky or as safe as the person wants it to be. Avoid being over-speculative without knowing how the commodity would perform later. If one is willing to accept nominal returns, the possibility of success is much more. Nevertheless, execute the transaction with considerable knowledge about the commodity trends.To cite an example, in case you expect a good harvest of wheat, which would result in an over-supply condition, the price of wheat in the market may go down. A good futures dealer would contract to 'sell' wheat at a predetermined price. At the same time, someone requiring wheat, to safeguard any increase in future prices, may contract to 'buy' wheat at a predetermined price, after three months.Hence, for every futures trade, there has to be a seller and a buyer, which results in balancing and avoids any drastic price movement. Neither the buyer nor the seller needs to commit investments proportionate to the contract. They only need to ensure the funds to cover in case their trades lose money.Besides the 'speculators', the commodity's producers or consumers can also take part in futures trading to minimize losses that may happen due to any sharp movement in the price. Futures' trading is not limited to commodities. It is also available for intangible items like financial instruments (stocks, bonds, currencies, etc).The advantage of a futures market is that it provides liquidity in the market and a continuous, close to accurate and well-publicized price trend, all of which ultimately benefit the consumer!Commodities trading can provide immediate spendable income. I look to earn at least 10? month from trading commodities. Quite often I earn many times this amount on a monthly basis.This flies on the face of conventional investing objectives which at the most usually attempt to gain 10? year. Especially when you consider that there are conservative ways to earn 10? month.Let's take a look at investors who invest $5,000 and average 10? month. This means their $5,000 is now $11,000 at the end of the year. This is because they earn $500 each month for 12 months bringing in $6,000 in profits. Notice I did not include the compounding of profits each month.By breaking the objective down into weekly manageable goals it is much easier. Take $500 and divide it by four weeks. This means you need to make $125 per week or $25 a day.For more information get Wealthy Investing Secrets at http://www.TheMoneyMotivator.com/? Copyright David D. Wells. All rights reserved. You are welcome to forward the entire Article to anyone interested as long as it is not edited in anyway and includes the Resource Box.David D. Wells is a superstar trader and bestselling author. Let him show you how fortunes are made in the 21st century. Subscribe to his free newsletter at http://www.themoneymotivator.com .

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