History suggests that rice futures might have been traded in China, almost 6000 years ago. Today, Commodity Trading has a monumental economic impact on nations and people. The four categories of commodities: viz. Energy, Metals, Livestock & Meat, and Agriculture give you the most lucrative options such as gold, silver, copper, aluminum, crude oil and Natural gas to trade in today’s market. Commodity markets have transpired from the dingy offices to new commodity exchanges like the NCDEX and MCX. Commodity trading is much cheaper as compared to the stock futures because the margins are much lower than in stock futures.
‘Equity’ with respect to investments is the amount of interest that ownership holds in a corporation, embodied in the form of company stocks whether common or preferred, Common stocks refer to proportionate ownership of a company, while preferred stock has equity and debt-like components. The securities involved in equity trading make it a more complex. Running for 24 hours a day, seven days a week, 365 days a year, equity trading acts as an economic indicator, and forms a considerable portion of the economy.
A rookie entering the market of trading potentially has got everything to lose for. Surprised by the statement? It is a fact that is only ‘felt’ by those unfortunate profit seekers who invest without any tiny kind of prior knowledge and experience of the market. Though, the facade of equity and commodity trading might seem or rather is lucrative, it takes a great deal of time to understand the linguistics and mannerisms of trading. Even so, almost, 80% of people still lose money because of the lack of knowledge. Familiarizing yourself with market trends and the techniques required in the decision making, will help you in maximizing your profits. Equity and commodity trading is not a short term activity and in true sense you will never get the expected results in this span of time. Long term investments will give you credible results.
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