How to Trade and Invest in Indian MCX Commodity Markets

If you are a MCX commodity market trader or Short-Term Investor. This post may be useful for you. Here I will focus mainly on precious metals (Gold,Silver) and Base Metals like Copper, Lead, Nickel, Aluminium and Zinc. Base metals which are also known as Industrial metals which prices are mainly driven by Industrial demand and supply . Although any commodity prices are driven by demand and supply, If demand rises price rises and if demand falls prices falls.

I have discussed some points for you :

• Before taking any position either Long or Short, try to identify the trend. The Short term trend and also the long term trend on daily, weekly and monthly chart.
• If you're  90% sure after analysing, then only you should make position.
• If your analysis or thought go wrong, exit immediately and take a pause, then re-analyse.
• Don’t over trade with leverage money, trade only 10% of your capital and if price go up or down then average it, but remember that your analysis or thought should be still valid. If that invalidate exit is better than averaging.
• Always set a target to book your profit near that.
• Focus your trade in limited commodity, not in all commodity.
• Keep watch on market news and know about all events which is likely going to  happens in near future.
• If you're trading for very short term, do event trading and take your profit smartly.
• Don’t stick with screen all the time, watch only on intervals in important time-duration.
• Adopt a trading strategy which suit you best.
• Keep away yourself from ‘Greed’ & ‘Fear’.
• Best of Luck.