How to trade unusual assets with amarkets
by nature we always strive for diversity: new places, people and hobbies. So in trading: at some point we understand that it is worth starting to trade in other financial assets to make it more interesting. Many who were selling the MI currency and promotions before, switch to Commodities, raw materials. This is gold, silver, oil, pork, beans. People are captivating that these goods are associated with the real world:
oils of oil affects the prices of gasoline, which we refuel cars. The grain course affects the prices of products that We buy and eat.
raw materials are a suitable option in order to make a financial portfolio diverse. Invest in gold and oil and earn when other markets fall (especially joints and indices). Why is that? Historically, the raw material market is growing when the stock market falls. Investors always withdraw large capital from one place to another when they are afraid of the future.
What unusual assets to choose?
Metals: aluminum, copper, nickel, platinum, gold. useful Fossils: natural gas, oil of brands Brent and WTI. Agricultural goods: grain, sugar flour, soybeans, cocoa, coffee.
See the Full List on the “Specification of Contracts” page.
How to trade Commodities: The basics of trading raw materials
study demand and demand. When the goods are in short supply, demand is growing for it, and prices rise. And vice versa: due to an excess of goods, prices fall.
Example 1. It became known about the outbreak of an unknown virus in China, which affects the horned cattle. Animals are sick and dying, and the supply in the market falls. There are as many people who want to buy animals, meat and milk, but manufacturers cannot satisfy demand. Demand is growing, and with it – prices for products: Demand for meat grows after they learned about an unknown virus . Example 2. When the stock market falls, people transfer capital to gold and other precious metals. Investors consider them a safe “harbor” for money when shares are falling: when the stock market index falls (S&P500), gold And silver grow (Gold, Silver) Example 3. Agricultural products (beans, grain) are very volatile in the summer and between seasons. The price is also affected by delays in planting cultivated plants: the price of corn is growing because the state decided to plant plants later than
what you need to know before trading in raw materials
in high -liquid commissions. For example, gold and silver are liquid, and they are always a small spread. Pork and beans are unlimited – they have a high spread. Raw materials are long -term attachments. Of course, you can monitor the goods inside the day, but let’s say right: the pros does not open the positions on raw materials for a couple of hours. They trade daytime and weekly graphs.
in the raw materials market dominate strong trends. These unusual assets directly depend on fundamental factors: demand and supply, reports on prey, seasonal patterns. Then the one who has better prepared for trade wins. By the way:
for preparing there is time. Commodities trading is more like a strategy game: you have long And carefully prepare, collect strength and knowledge to open one or two positions and earn more earlier and more than others. In general, if you are tired of routine trading in the system on long -studied assets, then ahead of adventure!
We will find a lot of options, except for Commodities:
Indexs of the main economies of the world: USA, Australia, France, Germany, China. Major cryptocurrencies: bitcoin, etherium, ripple. State bonds: Eurobonds, US Treasury.
prepare for real Trade
Let’s talk about gold. Throughout 2018, precious metal fell in price. It was a great idea to sell – everyone earned in short positions. Technically, the picture remained unchanged, fundamentally – changed in the root.
there were 4 reasons for this.
The key rate of the US Federal Reserve has changed. All 2018 Fed raised the rate, making the dollar expensive and weakening gold. But since the beginning of 2019, the United States has planned to reduce the rate. Such news was laid in the price of gold, increasing the demand for already cheap precious Metal: Key rate of the Fed 2018-2019. As a result, at the end of 2018, the XAU/USD asset began to grow in price exclusively on investors: Central banks bought gold. The largest buyer was the People’s Bank of China. He quarter behind the quarter increased gold reserves and thereby increased the demand for precious metal. Analysts believed that this is due to the following factor: China diversify capital due to trade contradictions with the United States. The People’s Bank of China left the dollar into gold due to political instability. Recall, gold is a safe harbor for investment at any time. The price rested in weekly support. The gold fell so much that it dropped until a week of support, which had previously kept the price 4 times. Investors bought precious metals near a round level of 1200 and below. As a result, great demand was the reason for the long -term rise in price.
What is morality?
do not stand still. Do not like daytime graphs – switch to intradeus. It does not go with currencies – trading raw materials. Experiment, And you will definitely find yourself in trading. Raise with a reliable Amarkets broker.