How to Trade Commodities

Use both technical analysis (price charts, indicators) and fundamental analysis (supply-demand reports, economic data). Our platform provides integrated technical tools and daily fundamental reports covering all major commodities.

Effective indicators include Moving Averages (20/50/200), RSI (14 period), MACD, Bollinger Bands, and Volume analysis. Gold responds well to Fibonacci levels while crude oil shows strong momentum patterns. Our analysts share indicator settings weekly.

Key events include US Non-Farm Payrolls (gold), OPEC meetings (crude oil), USDA reports (agri commodities). We provide an economic calendar with impact ratings and pre-event strategy guides to help capitalize on volatility.

Commodities show seasonal trends - gold peaks around Diwali/Dussehra, silver in Q1, crude oil in summer. Agri commodities follow harvest cycles. Our seasonal analysis reports highlight these patterns with historical accuracy percentages.

While MCX offers 5-10x leverage, beginners should use 2-3x initially. Always maintain extra margin buffer for volatility. Our risk calculator helps determine position sizes based on your risk tolerance and account size.

Spread trading involves simultaneously buying and selling related contracts (different months or commodities) to profit from price differentials. Popular spreads include Gold Mini vs Gold Guinea, Crude Oil vs Natural Gas. We offer dedicated spread trading tools.

A good plan specifies: markets to trade, position sizing rules, entry/exit criteria, risk per trade (1-2% of capital), profit targets, and trading hours. We provide customizable trading plan templates based on your experience level.

Optimal times are market open (9-11 AM) and overlap with international markets (6-11 PM). Gold is most active during London/NY hours, crude oil during US session. Our platform highlights high-volume periods for each commodity.

Our platform includes backtesting tools with 5+ years of historical data. Test strategies on gold, silver, crude oil with different parameters. We also offer strategy workshops to help interpret backtest results effectively.

Commodities can gap unexpectedly due to global news. Stop-losses protect against excessive losses. Use technical levels (support/resistance) or percentage-based stops (1-3% for gold/silver, 2-5% for crude oil). We offer trailing stops that auto-adjust.

Maintain at least 30% extra margin above requirements. If you get a margin call, either add funds or reduce positions. Our platform sends early warnings at 70% margin utilization and allows you to set auto-liquidation thresholds.

Spread risk across uncorrelated commodities - precious metals, energy, base metals, agriculture. Don't allocate more than 20-25% to any single commodity. Our correlation matrix helps identify diversification opportunities.

Stick to your trading plan, use predefined stop-losses, take breaks after losses, and limit daily loss limits. Our journaling tool helps track emotional triggers and we offer mindfulness sessions specifically for traders.

Key risks include price volatility, leverage amplifying losses, overnight gap risks, liquidity risks in less-traded contracts, and geopolitical events. We provide comprehensive risk education through video tutorials and simulated trading.

Use trailing stops that move with favorable price action. Take partial profits at technical targets (e.g., 50% at R1, 30% at R2). Our platform offers auto-scaling out features that automatically book profits at multiple predefined levels.

Hedging involves taking offsetting positions to reduce risk. For example, a jeweler can buy gold futures to hedge against rising prices. We offer specialized hedging accounts with reduced margins for genuine hedgers.

Set daily trade limits, wait for high-probability setups only, and take breaks after consecutive wins/losses. Our platform can enforce daily trade limits and provides activity alerts when trading frequency exceeds your plan.

Aim for at least 1:2 risk-reward (potential profit twice the potential loss). For example, if your stop-loss is ₹100 below entry, target should be ₹200 above. Our trade analyzer automatically calculates this for every position.