Comparing forex trading and the trading commodities

This resource provides information on comparing forex trading and the trading commodities.

When compared to the trading commodities the main advantage of the forex trading over trading commodities is the predictability factor. The forex trading is much predictable. All the other markets are unpredictable but in the forex market we must first understand the nature and the mercy of the whole range of factors. In most of the other markets like traditional markets, they are subjected to more than the global situations and the political upheavals and based on any economic situations. In the global market places, the nuances are a part of the factor that they affect the predictability on the traditional commodity markets and the commodities. The stocks are also affected on the basis of the performance of a particular company, no one can predict the performance of a particular company because sometimes the fraction of investments in accompany go on the darker side. This risk are affecting in the last few years on the basis of the economic boom in the basis of the recovery of many mini catastrophes all over the world. In the correct economic crisis the real effects of this shadow in the commodity market place are felt.

There are many money losses for the investors because of this unpredictability. Because of the nature of the markets most of the trading commodities are bound in red tape. The time can be more precious and as such these markets are not that liquid as the forex market in this world of trading. Now we are actually in the economy where the few hours may constitute to the big loss of fifty points or more points too and this means thousands of dollars for us in the stock options. Investments cannot be done very casually as how we sit in a café and drink a coffee. We have to be very careful in performing the investments. In the deep situations people have to think upon the next action they perform to get the best outcome in the investment they perform. In both sides of the economic swing you can make money easily as the forex markets are always been a highly liquid market.

In the predictability factor the forex market is always been given a good guidance based on certain principles and it has a good psychology and which can be studied and implemented. In the forex market some patters are followed and are always predicted based on the histories of the forex market and on how the investors and the other players are benefitted. You will have to perform a good prediction in the market in such a way that good market mechanisms are followed in order to make good money. And now it is time to compare the advantage and compare on the forex market and the trading commodities and invest upon it.

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Author: Pravat Kumar Das04 Sep 2014 Member Level: Gold   Points : 5

There should not be comparison between traders and trading avenues.

As Forex trading and commodity trading ( although the process is same the job of both trader is buy at lower price and sell at higher price to make profit), but the operation, and price fluctuation logic is totally different.

Forex market is spread world wide, when commodity derivative is limited to your country as it is a future market as well as a spot market and if necessary you can get delivery of your commodity product from ware house.

Suppose a farmer who knows about the production season and market demand of wheat, then with out knowing about Forex market also he can make good money from agri commodity.
So let individuals become expertise in there filed and start learning and trading to get profit.

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