Tag Archives for " trading the commdity markets "

Trading For A Living . . .

Taking the Safer Road to Profits & Stability

commodityprofitpotentialAn understanding of History would suggest that today’s chaotic, financial markets, which have created the crises we’re seeing, should not be the parties to which we give our trust and finances in hope that they’ll provide the solutions to fix what they broke originally.

The Truth, it is said, will set one free. In our case, what we’re seeking is a truth that will set us free from dangerous illusions as to where safe investments may be made during the current unsettling times.

The Truth is, that today’s ‘pseudo-economy’ has strayed so far from ‘Real’ Markets now, that a whole generation of traders and investors are completely unaware of the sane pathway back to Reality-based Markets.

Today’s generation of traders have no frame of reference as to what may be accomplished in a hard-to-manipulate, non-cheating market arena. Stability of results and of the markets themselves are the Goal and, this does exist in today’s world. We should seek out such an arena as a haven for both safety and safer opportunities.

Why? Because . . .

  • In a World where bonds want to charge you, not pay you for purchasing and holding them,
  • In a World where banks want you to pay them to give them your money,
  • In financial markets where high frequency traders can create fictional orders to trigger stops and pull those orders without any legal consequences,
  • and, in an environment where no banks, exchanges or wall street firms suffer any legal impediment from illegal actions (barring fines that are magnitudes less than their illegal gains),

We need to seek a fairer arena where we have a better edge built into the structure itself. Just what is that arena you may ask?

My answer is a market place that has been around since the 1840’s, still with us today and which is the basis for how we all live: The Commodity Markets.

Food. Soft Goods (like Cotton, Cocoa, Coffee and Sugar and more). These largely ignored real markets are not HFT (high-frequency trading) friendly due to their lower volume (they have no place to hide their front-running schemes).

That’s extremely good news for us. Instead of constant danger from these micro-second, front-running predators, the Commodity markets are still based upon Supply & Demand. Translated, that means real buyers and sellers and not the illusions peddled in the financial realms (whisps of fictional electronic orders which hit stops, or, valueless, unbacked paper touted as real).

This very Supply & Demand makes these markets less attached to false valuation because Seasonal Trends hold sway in Commodities.  ‘Seed Time and Harvest’ still apply annually and they always will.

Yes, weather and rainfall cycles, of course, are a variable, but, these markets are very well suited to our own methods of analysis and investing in even one of these commodity markets at the right time in their cycle can provide an excellent yearly income or supplement.

This is Good News for investors today, especially in a world largely confused as to what direction to invest in next.

The chart at the top of this article shows a recent, very small example using the Cotton market as our focus.

But, here’s even Greater News; These markets can provide several such large, profit-making opportunities EVERY YEAR!

And, one doesn’t have to trade commodity futures to participate in these repeating trends either. ETFs and options on ETFs are available for most major commodities now and, are priced low enough so that most can participate.

We’ll be looking at some of these markets and their recent opportunities in the days and weeks ahead. Be prepared to be pleasantly shocked as to what massive potential is available that so many are unaware of – George