Most Important Steps to Successful Commodity Futures Trading



My name is Vivek and I am a CEO of Trifid Research. I have come up with the subsequent personal observations following serving online commodity traders, international for more than eleven years. The following steps & tips are guides for improvement, and are not essentially in sequential regulate. Some of them are forever required, but every futures trader is dissimilar and will connect to these levels in their own pathways. While attempting to study and progress, one should keep in always mind that futures buying & selling is very risky and can involve important losses.


Market gains for the fourth consecutive trading session.

The market continued its rally for the fourth consecutive session led by index heavyweight Reliance Industries while FMCG shares gained after concerns over monsoon eased and ahead of the Fed’s two-day meeting tonight. Nifty gains 44 points to ends at 8091 while on the other hand Sensex rose 146 points and ends at 26832.


  • FMCG Stocks were in limelight in today’s trading session, Britannia hits fresh high on NSE.
  • BEML hits new high today and Ramky Infra gains on the back of huge volumes.
  • Gayatri Projects moved higher on preferential allotment to FII and promoters.
  • Glenmark hits record high as they received a final nod from the USFDA.
  • Jubilant moved higher as today company hike prices of Niacinamide by 10 percent.


  • Vedanta falls more than 3 percent and hits fresh low today on the media reports that a company will face more problems before getting nod for merger of Cairn with it.
  • Metals shares rebound/pullback led by Tata steel, as according to the media reports UK trade unions suspend the strike.
  • PTC gains after raising new funds worth Rs 15 crore through non-convertible debentures which will redeemable after 7 years.
  • Wipro gains on the positive news that the company is planning to set up facility in Odisha that would employ up to 28000 workers.
  • Financial Tech gains more than 16 percent in today’s trading session in NSE. The Stock opened in 137.90 made a high of 164.
  • Shares of Hathway moved higher after rating agency upgrade stock rating to buy from sell.
  • Acc gains 2 percent after the company reported that it has resumed limestone mining operations at Bargarh.
  • Housing Finance Companies like DHFL, Indiabulls housing finance were in focus today on the bourses.
  • Shares of Bharti Infratel which gains yesterday could not sustain on the higher side; fall on block deal.
  • Shares of ITC gains as launched new variants in Classic and Gold Flake brands with special filters and flavors in the premium segment.
  • TCS today reported that company launches Centre of Excellence in Hyderabad for next Gen tech solutions.
  • 1500 Nestle employees get effected after the ban of Maggi as in the company there were 1500 permanent workers who were directly involved in production across five plants in India.
  • Kirloskar Brother gets final nod from HC for merger of Pneumatic Holdings and Kirloskar Oil Engines with the company. Stock gains on this positive news flow.


  • APLLTD EQ is heading towards its new high, Buying is expected, so enter above 596 targets 602/608/614 SL 590.
  • Ceat Ltd has given breakouts of being resistance level and ends above it which indicates more buying from current level. Buy above 662 targets 668.60/675.30/682 maintain SL of 655.30.


  • European shares were steady to lower as markets awaited the release final euro zone inflation data and the Fed Reserve’s monthly policy statement later in the day and investors remained cautious amid ongoing concerns over a potential Greek default.
  • China shares gain as buying seen in Electricity, Utilities and Telecoms stocks.
  1. Commodity Trading Education:

Hopefully, if you are previously trading, you have fulfilled your initial commodity futures trading study: contract specs, brokers, trading hours, the platforms, the chances as well as the higher risk and require to use peril capital in commodity futures trading, and so on.

Understanding this tip is very essential to commodity products trading. The 2nd type of learning is ongoing: studying about trading methods, the evolution of the markets, special trading tools and much more.

  1. Find a System:

I am certainly not advising or suggesting you to walk off on the web and receive to a “black box” commodity futures dealing system (using buy or sell triggers, if don’t know why they are being created). What I am suggesting is developing a commodity trading technique: a common set of rules & a commodity trading idea. As your growth, you may wish for to put the special rules & signals into a computerized trading system, but the most significant thing is to have a plan and a focus. Don’t just get up in the morning & trade “blank.”

  1. Survival:

This is the main key! Do what you require to do in arranges to survive this ruthless business and provide yourself the opportunity of being at this time the road with further experience and a better possibility of success. Survival is almost certainly the major key for beginning commodity traders. There is a proverb in this business: “live to deal another day.” It is so true!

  1. Money Management:

While it is intimately related to survival, cash management in the futures trading can also situate alone. For your possess survival, you should set trade daily or weekly loss limits. Sound cash management is personally associated with perceptive your risk reward ratio.

  1. Commodities Trading Goals:

You must have a game preparation and established targets which will work as a site map to calculate your improvement and progress. Set per trade targets, daily targets, weekly targets, etc. Many of you, who are customers are very familiar with these issues: What is your everyday profit targets? Where do you look yourself in a single week from now.? After 6 months? After year from now? How are you prepared to acquire there? Break, it down into minute steps, and you will always recognize whether or not you are on the correct track. And don’t forget to continually reconsider your financial circumstances as it pertains to peril capital.

  1. Experience:

If you completed it to this level you are on the correct track! Just like everything else in the life, the more knowledge you have in commodity products trading, the better your success is probable to be. The main key is to acquire the knowledge and Commodity MCX Tips with no devastating your peril capital. What good are knowledge & experience without risk investment in your commodity trading account?

  1. Learn your Setups, Strengths & Weaknesses:

Always teach yourself to know different setups that you suffer comfortable & in no doubt with. Then assault. You can’t obtain this level without going during the earlier steps. If you didn’t survive, enlarge a trading system, set targets, etc., you may identify the correct setups, but lack the self-assurance or the cash to get an advantage. I sometimes evaluate being the commodity futures buying & selling “pro” of the lion who is waiting tolerantly for its prey and then invasions when the time is correct!

  1. Trading on a Consistent Basis:

This means that you will carry on to evolve as a trader or investors and go through these levels over the years again & again.

Most Important things for Commodity Trading:

In the earlier years, commodity futures trading in commodity products has emerged as a chief investment option in the Indian marketplace.

Now a day, commodity marketplace performance is similar to that of the equity & stock market and researcher predicted that the commodity products market will pass the capital marketplace in trade volumes earlier than later.

But since the commodity futures market is a comparatively new entrant in India, not lots of investors know, how to tap & benefit from buying & selling in various commodities.

Here are 10 most important Commodity Tips that you require to know to spend in the commodities market.

  • Locate a brokerage firm with a reputation for the service.
  • Fill an opening form of Demat account with an authorized brokerage house and a client with the National Commodity Exchanges (NSE). You could necessitate PAN (Permanent Account Number) card, address proof & passport size photos.
  • : Be clear about the rules & regulations, particularly transaction costs.
  • Choose the correct brokerage firm that optimizes your costs, brokerage charges ranging from approximate 0.03% to 0.08% on agreement value.
  • Be clear about the product, service deliverables from your adviser or broker.
  • Insist on daily reports, tips such as Commodity Tips, Commodity NCDEX Tips and special information/training chances.
  • Set aside money for commodity market investing, but keep in mind not at the price of other customary investment avenues.
  • Always focus on some commodities, gather necessary knowledge & pay up the first amount as a margin money, account opening fees and annual preservation charges.
  • Clear all doubts now set stop loss (SL) and book earnings levels.
  • Get prepared for investing in the commodity market and track your achievement & losses every time.

In Conclusion:

Don’t be disheartened by studying this. Succeeding in commodity futures trading takes very hard work & time. Please be sensitive, make sure you merely try this with peril capital only and occasionally check yourself and attempt to learn from your all mistakes and successes.

Good Trading!

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