COMMODITY MARKET – INVEST OR TRADE???

This is completely a false notion that commodity is only for investment purpose and not suitable for INTRADAY TRADING; instead there are noteworthy advantages which can actually make commodity market a better option for intraday trading.
One of the biggest advantages of commodity day trading is that you can focus on the more specialized market. In general, the rudiments push your chosen commodity in one direction or the other for greater lengths. For example, if you are a nickel trader and you come to know about the Japan’s earthquake news, you know that the overall price of Nickel should rise as there will be higher demand for the metal due to the higher construction need in near future. Because of this, you start looking for bullish arrangement in the Nickel futures market. And then you can simply sit and wait for the expected movement in the commodity to occur, and take advantage when commodity shifts in the expected route.
Another big advantage of day trading in the commodity market is that the shift of the commodity is very much predictable and shows the usual expected behavior on the back of some particular event. for example if there is some news that the US economy is in risk and US dollar is expected to weaken against the other currency than precious metals will be on the top probability to be on higher demand because due to the normal human tendency trader run towards the safer heaven and Precious metals are considered to be the safest area and substitute of savings.
There is very less distraction if you compare it with the other type of market and you can very well understand your market. For example, if you are trading tech stocks, you may find that bad news for Apple is suddenly damaging the price of your stock.
When you are trading gold you will be more worried about the value of US dollar and the upcoming economic data and other rattles will become silent on this. Different jangles which usually interfere with the intraday trading don’t interfere with your intraday commodity trading. That’s the reason, why intraday trade in commodity is smoother and you can focus on technical and fundamental data and envisage the commodity forthcoming moves.
Due to this Commodity intraday day trading becomes very simple process, as it is fortified against most of the other drama that appear during the other typical trading day. Commodity Trading professionals get an advantage over the other types of day traders, as it makes it easier to keep track of news that may or may not affect your commodity, as it is very specialized. So good technical analysts can help the investors, in turning the profit from commodity intraday trading.
So this myth that commodity is only for investment purpose is no longer taking lungful of air. The truth which lives is that you can trade in commodity market with full confidence. It would be more fruitful if you will have the guidance of a good research firm.