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Read this 49 page Quantum Swing Trading FREE Report! Meet the High Velocity Market Master and get your FREE COPIES of the Ultimate Day Trading System and the Risk & Money Management Tool! Turn $200 into $100K in just 3 months with this Penny Stock Trading FREE Report! Commodities as an asset class are quickly becoming popular! It is being said that the 21st century belongs to commodity trading. Just remember the early part of 2008, when crude oil prices skyrocketed from $60 per barrel to around $150 per barrel. Wheat, copper, silver, aluminum prices all hit a high during the same time. It seemed that commodity prices are going to hit an all time high.
This boom in the commodity prices is going to continue for many decades. Commodity trading is going to make many investors and traders rich in first half of the 21st century. Fundamentals for commodity market are strong. With Brazil, Russia, China and India (BRIC) developing at a fast pace and other countries joining the rank of the emerging economies, demand for commodities will be a all time high for many decades.
You don’t have to just invest in crude oil futures or gold futures to benefit from this boom in the commodities. You can invest in ETFs, buy precious metals ownership certificates, invest in Master Limited Partnerships or invest in companies that process commodities such as uranium. Commodities markets are global in natures and so are the investment opportunities.
Master Limited Partnerships (MLPs) that invest in energy infrastructure like pipelines and storage facilities are a unique investment as they are traded publicly like a corporation but they offer the benefits of a partnership. Unlike Corporation that are taxed two times, MLPs are not taxed and they pass on their income to shareholders tax free. You will be only taxed on individual basis if you invest in an MLP. An MLP’s primary responsibility is to pass on all the cash flow directly to shareholders, you can afford not to invest in MLPs.
With the rise in the crude oil prices, the demand for nuclear power is on the rise. Price of uranium has gone from $10 in 1994 to more than $40. Uranium market is in an extended bull market for the last decade. You can profit from investing in companies that mine uranium ore.
As more and more investors and traders flock towards commodity trading, exchanges that provide futures contracts, options and other derivatives to commodity traders have seen their stock prices rise! The Chicago Mercantile Exchange (CME), one of the largest commodity exchanges has seen its stock price rise from $40 in 2003 IPO to almost $500 in 2006. This performance was even better than GOOGLE. With the global economy out of recession, this price is again going to shoot up. This is the best time to start commodity trading!
Tags: commodities, commodity investing, commodity trading, investing in commodities, trading commodities
Posted in Stocks · March 4th, 2010 · Comments (0)
Autotrading is common in the currency trading. Many hedge funds and other entities that manage money through forex trading use some form of autotrading in their daily activities.
Big institutions always had proprietary autotrading systems developed by their inhouse programming teams. These autotrading programs also known as Expert Advisors or Forex Robots were expensive costing like thousands of dollars and only wealthy individuals or big institutions like hedge funds could afford them.
Many private individual traders have also begun to adopt autotrading to execute their thoroughly backtested and highly optimized forex trading strategies. The recent advancement in computer programming has made it possible for professional forex traders to team up with a software expert to develop their own autotrading systems.
The recent advancement in computer programming has made these Expert Advisors cheap. The price of these Expert Advisors has come down to around a few hundreds that can be easily purchased by ordinary investors like you and me. Metatrader platform makes it real easy to program such type of Expert Advisors.
Recent advancements in computer programming has led to the development of trading platforms that allow an API ( Application Programming Interface) which connects the trader’s system to the dealer’s trade execution structure through the trading platform. So what is autotrading? You must have heard or read a lot about the benefits or advantages of autotrading.
Once all of the trading rules and criteria are determined by the trader, programming an API can be relatively straight forward for anyone with programming experience. APIs requires programming skills on the part of either the trader or a programmer hired by the trader. After the specific trading rules and criteria are determined, the trading strategy is backtested with positive results.
The development of an autotrading system depends more on your trading skills as compared to your programming skills. When this occurs not only trades entered when predetermined technical criteria is met but trade exits in the form of stop loss and take profit rules can also be programmed into the API. Autotrading is almost as simple as flipping a switch to begin the trading process.
However, before an autotrading system is put on live trading, it is thoroughly backtested and forward tested to make sure the likely success of the autotrading system. This creates an entirely self contained autotrading system. So autotrading can actually execute real trades on current real time market prices. When a predetermined signal emerges, the software actually places a trade automatically.
In fact, autotrading is perhaps the best way to achieve it if the trader has optimized and perfected this type of black and white trading strategy that runs devoid of human judgment. Any nondiscretionary technical trading strategy that has clear cut, unambiguous rules is a good candidate for autotrading. Autotrading effectively eliminates all human biases, errors and emotions in the trading process.
The best two forex autotrading systems are FAPT and Ivy Bot. There are a number of successful autotrading systems now available in the market for the ordinary retail investors.
Mr. Ahmad Hassam has done Masters from Harvard University. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account! Get a totally unique version of this article from our article submission service
Tags: Business, commodities, day trading, Finance, forex, futures, investing, market news, mutual funds, options, Real Estate, Stocks, trading, wealth building
Posted in Stocks · November 16th, 2009 · Comments (0)