Before you start to trade commodities

Before trading commodities, you need to practice trading under relalistic circumstances. This is best done with a demo trading account.

1. How much to invest in commodities?

Decide how much you are prepared to invest in commodities.
£500, £1000 or £5000? Don’t invest more then you are ready to loose.

2. Choose one or two commodities to follow

It’s impossible to be an expert on every single commodity out there. Focus on one or two, for instance gold and cruide oil. Read the news, follow macro-economic events, currency graphs and try to discover more about the commodity you chosen.

3. Decide maximum leverage

It’s easy to use to much leverage, which in turn can sweep out your account. Make sure to set at limit from the beginning, for example, ‘never use more then 200 % leverage’.

4. Decide your trading style

Successful commodity traders use a single trading strategy to profit from the commodity markets. What is your style? Short term trading, news trading, swing trading or technical analysis? Make sure to learn about trading robots as well, a way where you set up a strategy and your commodity broker execute the strategies automatically.