Posts Tagged ‘Commodity’

Stock or Commodity trading, which one is best for the individual trader?

Stock or Commodity trading, which one is best for the individual trader?

(PRWEB) April 30, 2004

Before you invest your hard earned money in a stock that you have no idea whether it is going to go up or down, why not look at investing in commodities. Most people are afraid of commodities because of the horror stories that they have heard of having bushels of corn delivered to their home. This doesn’t happen! Believe it or not, in today’s investment world trading commodities sometimes is a better way to trade than stocks. The only way you can really know if a stock is going to go up or down is by being an insider in the company. This information isn’t available to the average trader, and if you somehow acquire it you could end up going to jail.

Legal inside trading information is available for commodity traders. You can get this information for the U.S. Government agency known as the CFTC. Here we actually have the government putting taxpayers money to good use. The public really has no idea about this information that is available to them.

The CFTC (Commodity Futures Trading Commission) is a government agency responsible for monitoring & regulating the futures industry. They require that large traders holding positions above a specified level to report their positions on a daily basis. The CFTC tabulates this data and releases it to the public every Friday. These large positions are broken down into two categories: Commercial & Non-commercial.

Commercials or “Hedgers” deal in the cash market and consist of two groups: Producers & Consumers. Producers such as farmers, mining companies, and mutual funds, benefit from higher prices. The futures market acts as an “insurance policy” for them. Consumers of the commodity markets also benefit from this “insurance policy.” Food processors, oil refineries, and manufacturing companies are all examples of consumers. Their objective is to minimize costs.

How do we use this information to our advantage? There are basically two ways to trade the futures market: Technically and Fundamentally. The majority of traders have a purely technical approach with total disregard to the fundamentals. While this can be profitable, it can also allow a trader to be completely blind-sided by the market. It pays to know the fundamentals. The fundamentals allow you to anticipate where the market is heading. The fundamentals we use are the data that the government releases. The data is called Commitment of Traders, or COT.

We use the Commitment of Traders data to determine what the fundamentals of the market are. We believe that the Commercials who deal in the cash markets on a daily basis know much more about the fundamentals than we do or anybody else for that matter. They have the money and the motive to pay the salaries of weather scientists, forecasters, research scientists & analysts from all over the world. We use their expensive

fundamental analysis at their cost, not ours.

We’ve found ways to analyze both past and present COT reports to gain insight on the current condition of the market(s) and what the commercials are anticipating in the near future. Remember, the commercials are the most informed group of traders. They are the ones who provide the supply & demand information to the USDA and other government agencies, which in turn release this data to the public in the form of S&D reports, crop reports and other reports in which the public tend to anticipate and react to.

Accessibility to the data is a unique and important tool in your trading arsenal. The way we present this data to you is in an easy to understand graphical format.

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Returns from share stock, commodity market and mutual funds

Nurturing a dream to put in money in the shares market and gain maximum returns? This is a common phenomenon in the current scenario. People are aware of the great potential lying ahead in investing in equity shares. There is hardly any individual who would want to incur losses. But losses do occur and one cannot do without it as profits and losses are two sides of the same coin in the shares market. It is easy to be influenced by rumors but when you actually start in practicality, you will know that making money is not so easy. Though you would require no manual labor to invest in equity shares, it is all brainwork that does the wonders. And brainwork is facilitated by a number of factors right from staying updated with the share stock market, conducting research on the rising and falling value of shares, considering market trends, and related paraphernalia. Knowledge always pays; knowledge utilized is efforts rewarded. So if you are seriously interested in investing in share stock, start gaining knowledge. Once you are equipped with all the basics, trading terminologies, market terms, etc., you can go ahead with your investing in the shares market.

The next step is opening an online trading account and demat account. You no longer need to waste time looking for an experienced SEBI authorized broker. Why worry when online brokerage firms are available to your advantage. At such a platform, you can not only open your accounts but also get all the required guidance. You can stay connected with your broker online or via phone any time you desire during the trading hours or beyond that. Countless investors in equity shares today are benefited from registration at such platforms. You will come across numerous brokerage firms; the smartness lies in choosing the one that will best serve your investing requirements in the share stock market. The greatest advantage in getting registered at a good platform is that you will not only get the right suggestions related to share stock but also concerning mutual funds of India, commodity market, etc. Now that you have a demat account, you can go ahead with your equity shares trading; do consider all factors involved.

If you choose the National Commodity & Derivatives Exchange Limited (NCDEX) in the commodity market of India, you can trade in one or several of the 57 listed commodities. It ranges from chilli, chana, expeller mustard oil to groundnut (shell), crude palm oil, gaur seeds, guar gum, kidney beans, pepper, raw jute, and the list goes on. Promoted by national level institutions, the exchange was incorporated in the year 2003 under the Companies Act, 1956. Start trading in the commodity market too and see your money grow fast.

The current buzzword in the investor’s segment at present is related to mutual funds of India. At present few of the top mutual funds of India are those concerning Tata, Religare, Birla Sunlife, ICICI, Reliance, and more.

Is it possible to invest in 401k using precious metal commodity?

Question by siegheil_neocon: Is it possible to invest in 401k using precious metal commodity?
With the news of uncertainty about the state of financial market in terms of stability, and when it does hit the market hard, the banks facing the catastrophe will not allow withdrawal of cash from the individual and business accounts, will the holding of precious metal in the deposit of the trustworthy holder (mutual fund company or other) allow APY (annual percentage yield) in compound interest on precious metal and jewelry (lucrative gems & rare minerals) holding depending on the current market demand for precious metals (fine gold, silver, platinum, etc)? Or does compound interest apply only to paper currency in saving and investment?

Best answer:

Answer by newjerseyguy
It totally depends on the structure and investment options offered by the particular 401(k) plan.

Add your own answer in the comments!

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where can I see continuously updated charts showing commodity prices online?

Question by worldpeace: where can I see continuously updated charts showing commodity prices online?
I use google finance to follow stocks and mutual funds. Is there anything similar that I can use to follow the price movement of commodities?

Best answer:

Answer by Net Advisor
If you want real time updated charts you’ll need to subscribe.

Here is a good service from Reuters.

http://www.equis.com/

There are others, but I trust this source. Reuters is a 150 year old company and world respected.

What do you think? Answer below!

Latest Commodity Mutual Funds News

IndexIQ Launches the First Exchange-Traded Fund Focused on Emerging Market Mid Cap Stocks (EMER)
IndexIQ, a leader in developing index-based commodity, international, and liquid alternative investment solutions, is launching the IQ Emerging Markets Mid Cap ETF on the NYSE Arca platform this morning, it was announced today.
Read more on Business Wire via Yahoo! Finance

U.S. ETF Assets Expected to Double to Trillion in 2015, Says New BNY Mellon-Strategic Insight Report
Assets in Exchange-Traded Funds in the U.S. are expected to double to $ 2 trillion before the end of 2015, according to a new whitepaper from BNY Mellon and Strategic Insight.
Read more on PR Newswire via Yahoo! Finance

Is Gold Money?
During today’s Congressional testimony Fed Chairman, Ben Bernanke, was confronted by Rep. Ron Paul with the question, “Is gold money”? (see video below) The Chairman answered, “no” and went on to say the reason why central banks hold gold is because of “tradition”. Interesting!
Read more on Business Insider

Making Money From The Share Market, Mutual Funds, And Commodity market

Making money in today’s time is no difficult affair. Gone were the days when you needed big capital to start a venture. Current times are different. There are abundant of opportunities for making money and you need no big capital for the same. A few hundred bucks to thousands will well serve your purpose. The medium for investments can be the share market of India or commodity market or the mutual funds of India. You may opt investing in all the three segments; this will let you maintain a balance of losses and profits besides minimizing your risks levels. What is most important is knowledge. If you are ignorant about the markets there is no assurance of making money. When a wealth of information on all three aforesaid segments is available online why worry. With a click of the mouse you can collect the desired information. An online brokerage site will well serve your purpose. It is not only tips and suggestions on the share market of India but also the commodity market and mutual funds of India that you will get complete guidance. The effort will be further rewarded if you are novice investors. You will be steered towards the right direction.

When investing on a BSE share or NSE share in India, do consider the market trends. If you do not follow market trends, getting returns will seem a difficult affair. As aforementioned, get registered at a brokerage portal to get guidance in choosing many a potential BSE share or NSE share in India.

The concept of investing in the commodity market was at a nascent stage for sometime as not all sectors were incorporated. Today, this market is as popular as that of investing in a share in India. Initially it was trading and exchange of commodities for regular and day-to-day use that the market was restricted. Currently, almost all existing sectors are incorporated and with advanced technology having its influence in the commodity market, speedy movements, transfer and transaction of goods and services have become a humdrum affair.

If you are interested to invest in mutual funds of India, you should first familiarize yourself with few of the terminologies such as annualized rate of return, asset allocation, bear market, benchmark, blue chip, etc. Annualized rate of return is the performance measured over long periods. It is the return achieved over a period of time expressed as an annual compounded interest rate. Based on risk appetite, financial objectives, and related paraphernalia, a portfolio of assets is distributed among different types of investments instruments. It can be commodities, derivatives, equities, bonds, and other money market instruments. This is called asset allocation. Bear market refers to the downtrend of a market. Blue chip refers to companies that are fundamentally sound and have large market capitalization with established record of making good profits. Once you know about such terminologies, investing in mutual funds in India won’t seem a difficult task.

Gold, Inflation and the Money Supply John Budden (67) has 46 years of diverse, domestic and international investment experience. In addition to his investment activities he was a contributing editor for The Financial Times of Canada on ‘Interest Rates and Currencies’ from 1977 to 1988. He had the privilege of interviewing some of the world’s top mutual fund portfolio managers for CNBC during the early 1990′s. From 1973 to 1981 he advised international corporations on currency and commodity trading. In 1978 his firm, John Budden, Inc., was acquired by Conti Commodity (REFCO) and he became a Vice President (canada). In 1983 he joined Dynamic Fund Management, as Vice President, Marketing. At that time Dynamic was one of a handful of Canadian mutual fund families offering No Load funds. In 1985, he and Ted Rabin co-founded Rabin Budden Partners, an investment counsellor and No Load mutual fund manager. Rabin Budden Partners was acquired in 1988 by Altamira Management which became one of Canada’s largest and top performing No Load mutual fund families. In 1990, he returned to Dynamic Fund Management as President and CEO, and as a Director of Dundee Capital Inc. and Goodman & Company. In 1992 he moved from Toronto to Boston. In 1993, he acquired a 25% interest in, Kanon Bloch Carre, a Boston based mutual fund research and consulting firm. KBC had prepared the Exclusive Fund Survey for US News & World Report since 1989. Then in 1996 he sold his interest to Bill Dougherty, the …
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September 25, 2010 Technical Analysis for ” COMMODITY futures”

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Putting In Money In The Indian Share Market, Commodity Market And Mutual Funds

Confusion does rule the roost for many when it comes to investing in the diverse investment products; the Indian stock market is no exception. Have you consulted with your broker on whether you should buy Indian stocks based on the trends? Interaction again depends on the level of experience your SEBI authorized broker has. Your confusion about choosing potential Indian stocks can be cleared at a stock broking portal that is reputed in the market for delivering superlative solutions. Search online and read reviews; you will end up visiting the right platform. Once you are confident, just get registered. Today, investing in the Indian share market has turned out to be an easy affair due to the existence of such online brokerage firms, always ready to cater to the investing needs of investors. At such platforms, in addition to getting tips and suggestions on Indian stocks, you can have access to the A-Z of news related to the Indian stock market. So, get registered and do away with your confusion!

No matter whether you are employed or stuck to hectic schedules, you can involve yourself in investing in the Indian share market and get the returns you have been dreaming of. If you go through information online you will come across recommendations of first getting familiar with the intricacies involved before you actually start trading. This will help you take informed buying and selling decisions. The Indian stocks market will then often turn to your favor! Though your broker handles your transactions and account, it is you who give the green signal in buying and selling.

So, you are attracted towards investing in mutual funds of India. But are you familiar with the terminologies? If not, first familiarize yourself with all the concepts, process and terminologies so that you do not end up investing in the wrong funds. You should know such terms as annualized rate of return, blue chip, asset allocation, benchmark, capital appreciation, compound, derivative instrument, entry load, equity, exit load, emerging markets, index, index fund, management fee, portfolio, riskless asset, and the list goes on. Do compare the mutual funds of India before investing. Investing in the top mutual funds does matter. Consider the performance of your chosen mutual funds of India over the past several weeks; this will help you take the right investing decision.

There are several exchanges in the commodity market of India; one worth mentioning is
Multi Commodity Exchange (MCX) based in Mumbai. What witnessed nascence in the year 2003 saw a generation of turnover amounting to a mind boggling US$ 1.24 trillion last fiscal. This well justifies the people’s increasing interest in investing in the commodity market. In terms of contracts traded, MCX was deemed the sixth largest commodity exchange in the world in 2009. In the commodity market of India related to this exchange, you can trade in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities.

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Stop bankers betting on food: our campaign to limit commodity speculation

Stop bankers betting on food: our campaign to limit commodity speculation
Banks are earning huge profits from betting on food prices in unregulated financial markets. This creates instability and pushes up global food prices, making poor families around the world go hungry and forcing millions into deeper poverty.
Read more on WDM

Sentry Select Primary Metals Corp. (TSX:PME) files final prospectus for up to ,229,639 treasury offering
TORONTO, ONTARIO– – Sentry Select Primary Metals Corp. is pleased to announce that it has filed a final short form prospectus in each province and territory of Canada, in connection with its treasury offering of up to 3,945,420 Class A shares of the Company for gross proceeds of up to $ 41,229,639.
Read more on CCNMatthews via Yahoo! Finance

Maximum returns from mutual funds, Shares, and Commodity Market

Thinking of where to invest the extra money that you are able to save so that you get good returns? When myriad investing options are there in the market why worry? A click of the mouse will let you discover them. You may have a diversified investment portfolio so that you get returns from different segments and the risks involved get well maintained. Moreover, with diversified investments, you may well maintain a balance of your losses and profits. No matter whether you are engaged in online stock trading or putting your money in the commodity market or mutual funds of India, knowledge about the market is a must. Without knowledge it will be like sailing in a boat without a rudder. You can then well imagine the consequences.

The share market of India or the commodity market may look very lucrative from far. These are no doubt lucrative platforms but the returns you gain all depend on how you proceed. The wrong decisions will only bring you losses and vice versa. Be prepared to face risks as there is no assurance that you will always gain unless you have the expertise. Success in the share market of India, mutual funds of India, and commodity market is all about following the right strategies designed in sync with changing market conditions. Here are few of the strategies following which you can certainly witness positive results irrespective of the segment you are involved – mutual funds of India, online share trading, commodity market.

•    Strategy 1: Be assured that you have the basic knowledge of each field you are interested to put your money. Do also acquaint yourself with the investing process besides the procedures involved in opening an online share trading account or mutual fund account or the like. Also get acquainted with the changing market movements including factors that affect the share market of India, commodity market and mutual funds. This is because you cannot take your investing decision based on guesses or speculation
•    Strategy 2: Getting updated with the up-to-the-minute happening of the markets you are involved in is a must. Updates do affect your investing decisions. For example if you invest in the share market of India or commodity market based on some past news, you cannot assure yourself of the returns that you will get. It will be like blind investment
•    Strategy 3: Prior to taking any investment decision, it will be wise on your part to conduct enough research. For example, if you are engaged in online share trading, buying the potential stock will require you to research well about the company, its productivity, etc. You may use stock technical analysis or fundamental analysis or use other trading software
•    Strategy 4: When you create your demat account or mutual fund account or any other market account, choose a reputed and trustworthy online stock trading platform that also serves as the medium for all other market investment options.

Nicolas Fragneau , Global Commodity Equities Portfolio Manager at Amundi shares with us his outlook on the commodities sector. Interview Questions: 1. What is your outlook on commodity companies for the rest of 2010? 2. Is 2010 a good time for investors to get on the commodities bandwagon? 3. What are the key drivers that drive commodity equities? 4. What are the key risks for commodity equities? 5. Is there a particular trend or sector that you feel strongly about? Why?
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