Commodity Markets Trading With Technical Analysis

Commodity trading is best done with the help of technical analysis. Technical analysis shows a trader the direction; he should take while dealing with commodities. Whether one should buy or sell is best determined with the help of Technical Analysis. A good trading system will always incorporate methods used in TA within itself.

Technical Analysis Defined

The process of determining the condition of a commodity (based on the historic price) with the help of charting is called Technical Analysis. It combines probability mathematics and statistical information to determine the future price movement of a commodity with probability on your side. For example, if someone were to walk up to a door, and you were told to guess which direction they would go – left or right, whatever you chose, it would be speculation. On the other hand, if they went left, and you followed them, that would be called trend following. Similarly, if a commodity future moves in a direction and you use TA to guide you, you can buy it after it shows a move into a certain direction, and a trend has been confirmed.

Uses Of Technical Analysis

There are many ways TA helps traders in trading commodities. The primary principle in TA is to have the ability to follow trends. To be able to do this, one has to be able to catch it early enough. So, you can buy into a commodity if you can confirm that it is in an uptrend. The key point to remember is that TA assumes that price discounts everything.

All movements of market participants are reflected in the price of any commodity at any given point in time. The idea is to buy low and sell high, or vice versa. This sounds simple in theory, but is difficult enough in real life. Imagine knowing that the probability of a commodity will breakout on the upside, but also that it is only a probability, and not a surety.

How Do We Use Technical Analysis?

TA has many different theories. These include common theories and indicators such as moving averages, Fibonacci series, oscillators, Gann theory, Elliot wave theory, and the age-old Candlestick theory from Japan. Many users tend to combine one or more of these theories to get greater accuracy in determining the trend more correctly in their favor. One has to remember that probability needs to be on our side.

The risk to reward ratio should always be in our favor. A lot of people use TA to help them establish a trend, get the point of a breakout and look for a point to buy or sell a commodity. They also use it to determine their stop-loss, and possible target price. This is an advantage that TA has over any other form of analysis. Being mathematical in nature, it gives you exact figures as to what levels you need to enter and exit a commodity.

Trading in Stocks

A Safe Bet

Trading in stocks and shares is the best option for those who do not have sufficient funds and experience for doing any other business. You can start small, dream big and finally reach the stars. The initial investment can be ludicrously small. In fact ‘investment’ is too big a word for the amount of money you require to start trading in stocks at the initial, learning and experimental stage.

Minimal Investment

You can start with the cost of a pack of cigarettes or the price of a cup of coffee. All you need is a personal computer and an Internet connection. Surf through the net and you will find that there are hordes of online stock brokers. Read through their sites and decide on the one that suits you best. You can open your account online at free of cost. Besides, you will find the necessary instructions at the website to set the ball rolling. Tread the ground cautiously, have patience and try to learn as much as you can the new lingo of stock trading from the education tab of your stockbroker’s website.

Education in Stock Trading

The education section of your stockbroker’s website provides comprehensive details about various aspects of stock trading. Starting with the definition of a stock, the reasons to buy stocks, investment risks, types of investments and ticker symbols, the instruction material further explains how the stocks trade, the stock market, the primary and secondary markets, the major stock exchanges like the NYSE, NASDAQ, AMEX and OCTBB for Penny stocks. Once you are familiar with the basic functioning of the financial market, you will begin to understand the factors that drive the share prices such as supply and demand of the stocks and shares that you trade in. You need to understand the concepts such as ‘earnings per share’ and P/E ratio. The knowledge of these basic concepts will help you to evaluate the price of the stock of a company and its income potential.

Cautious Beginning

If you are a novice to the art of trading in stocks, your first step should follow the guidance of your stock broker. Become acquainted with the terminology associated with stocks such as bulls and bears and what they signify. You should also be familiar with the research tools and research reports that highlight the financial performance of the company you are interested in investing in.

If the price of your stock goes up, and your broker asks you to sell it and book profit, it is in your interest to do so. Do not be greedy and wait for your stock to touch the skies. The wait may become interminable and you may be stuck up just in one stock and will not be able to move further. Who knows the value of your stock may plummet in future and you are left wringing your hands in despair. It is always advisable to be dynamic, keep moving, changing, experimenting and learning. Since the initial investments are small, the risks can be affordable. Once the fundamentals are clear, you may shoot for the big.

Cape Town’s Trendiest Suburb

Camps Bay is an area now not to be neglected on a Cape Town vacation – one of the trendiest, most lovely suburbs found in the Mother City. With a stretch of beach no much less breathtaking than a postcard, and some of the town’s fine bars and restaurants, it’s far no small marvel people flock to this seashore hubbub come rain or shine.

The Beach and Promenade

Camps Bay seaside hosts Cape Town’s most stunning human beings at some point of the summer, with tanned bodies unfold throughout the whole seashore on every occasion the sun is out. This is the vicinity to peer and be visible, so make certain to wear your preferred pair of Gucci solar glasses if you need to in shape in with this elegant crowd.

If you need to catch a tan to your Cape Town excursion, this beach is simply the vicinity. You can spend hours lounging at the smooth white sand, and whilst the solar receives too hot, you may take a quick dip inside the sparking Atlantic Ocean water. Be warned, but, for this part of the ocean is freezing, and most effective the courageous few can ultimate inside the water for more than a few minutes.

If you want to stretch your legs instead of mendacity on the sand all day, a picturesque prom borders the beach. Roller-skaters waft on by way of, couples ingesting ice lotions respect the view, and those who need to strut their stuff parade down the sidewalk. If you fancy sampling a number of the sector’s high-quality ice cream, Sinful Ice Cream parlour is known through all the locals. Delicious flavours from cookies and cream to pistachio and praline anticipate you, and you may experience this creamy wonder as you stroll along the beachfront.

The Restaurants and Bars

Camps Bay is understood for its colourful eating places and bars. There are few better activities when on a Cape Town excursion than experience a sparkling seafood meal at the same time as observing out over the Camps Bay waters, smelling the salt in the air and watching the crowds strut by using. There are lots of eating places to pick from, and you could take your pick out of tables within the sun as you experience seafood and cocktails.

At night the place becomes even more colourful, with severa modern bars hosting the metropolis’s elite alongside the beachfront. If you’re there on a Sunday afternoon, La Med is the location to be. With a secure environment and a sunny out of doors area, this is one of the most popular alternatives alongside the beach.

Camps Bay Sunset: One of a Kind

Camps Bay has a popularity for having the most lovely and picturesque sundown in Cape Town. And a tailored holiday in Cape Town will now not be complete till you have spent as a minimum one night watching the solar cross down over the sea. Each evening, picnickers flock down to the beach, and enjoy sundowners and snacks whilst sitting at the sand. Camps Bay is one of the quality seashores on the Atlantic Seaboard for sunsets, where the sun actually seems to be sinking into the ocean, in opposition to a red and crimson sky.

Common Terminology in Futures and Commodities Trading

While at a coffee shop with friends, one turns to you and says, “I just went LONG in Lean Hogs off a confirmed swing bottom.” What did he say? He went “LONG” in a hog off a swing in the bottom?”

For those of us who trade, we instantly know what was just said. By going “LONG”, this person BOUGHT (or is a BUYER) in the Lean Hogs futures market. His decision to do so was based on his determining that Lean Hogs had made a bottom and was now moving higher, thus ‘confirming’ the bottom.

The term LONG is very common in trading circles. It simply means that you took the BUY SIDE of the trade (every trade has two sides, the one who SELLS and the one who BUYS). You believe the market is going to go UP, so you decide to BUY, thus going LONG.

The term SHORT is the opposite of LONG. When you go SHORT, you are a SELLER in the market. In trading Futures and Commodities, you can just as easily SELL first to open the position SHORT, in hopes the market is going to go down. Later, you can then close your position with a BUY.

When you BUY to enter a position, you are LONG. But when you BUY to exit a position, because you SOLD first (went SHORT), you are simply out of your position.

When you SELL to enter a position, you are SHORT. But when you SELL to exit a position, because you BOUGHT first (went LONG), you are simply out of your position.

When you are out of all your positions, you are considered FLAT.

MARGIN is a term used in reference to the amount of money you have available in your trading account that can be used for trading. Brokers require that you have a certain amount of capital available for each contract you trade, in the event that the trade does not go in your favor. A MAINTENANCE MARGIN is the minimum margin you must have in your account for each futures contract you enter into.

BULL MARKET refers to a period when prices are rising. A BEAR MARKET refers to a period when prices are declining.

COMMISSIONS are the fees you pay to the broker for executing your trades.

HEDGING is the practice of offsetting your risk in the actual commodity by taking an equal but opposite position in the futures market. For example, a Farmer who grows Wheat has inherent risks to his crop. By the time he goes to market, prices could have dropped. To protect himself, he can take a SHORT position in the Wheat futures. If the price of Wheat drops by the time he goes to sell his crop, he losses in the actual crop, but he gains in the SHORT futures position, thus offsetting his losses. If the price of Wheat instead moves higher, he gains in the higher prices he is able to sell his Wheat for, but losses in his SHORT futures, again offsetting each other.

DELIVERY refers to the transfer of the actual commodity from the seller of a futures contract to the buyer of the futures contract. Most traders do not take delivery, but will close out their position by FIRST NOTICE DAY.

FIRST NOTICE DAY refers to the first day that a notice of intent to deliver a commodity can be made by a clearinghouse to a buyer of a futures contract.

These are some of the terms you can expect to hear among traders of Futures. There are a few others, less used. And if you trade Options on Futures, you have a whole set of terms such as PUT, CALL, In-the-Money, Out-of-the-Money, etc.

Before engaging in futures trading, take the time to learn the language. This way, there will be no mistakes in communication between you and your broker, and it helps when sitting around with traders at the coffee shop.

Transportation Management System: Choosing a Logistics Resource

For the average shipper, the cost of freight transportation is second only to the cost of payroll. Consequently, when a shipper needs to increase its bottom line, reducing the cost of freight transportation is one of the first considerations. There are two keys to achieving a cost-effective shipping process: the correct selection and correct management of shipping arrangements, both of which require a logistics resource. There are three types of logistics resources for managing a shipping system:

  • In-house logistics department -A shipper that operates its own fleet typically uses this resource. Due to the capital required to maintain the department, implementing a logistics department is often unfeasible for small and midsize shippers.
  • Third Party Logistics (3PL)– Also known as freight brokers, 3PL providers negotiate shipping arrangements between shippers and carriers. 3PL can be less expensive than maintaining a logistics department, but it still involves paying logistics professionals.
  • Freight transportation software– Freight transportation software can supply the logistical solutions that are traditionally supplied by a logistics department or 3PL provider. From a cost perspective, freight transportation software is the most economical logistics resource.

With the emergence of Software as a Service (SaaS) solutions for the shipping industry, the popularity of logistics software has increased. The software can also be implemented on an in-house model, but implementing it on a SaaS model eliminates the costs of installing and maintaining in-house software.

The Goals of Transportation Management

Positioned between the Enterprise Resource Planning (ERP) system and the shipping process of a company, a Transportation Management System (TMS) has three goals:

  • Plan the shipping process, including carrier and transportation mode selection, rate selection, and load and route optimization.
  • Monitor the shipping process, including cost control, quality control, and tracking of vehicles along the shipping route.
  • Measure key performance indicators, including monetary productivity, cost per metric, and percentage of on time deliveries.

These goals can be accomplished by an in-house logistics department, a 3PL provider, or with freight transportation software. As it considers these options, the shipper must consider how much it needs to economize on the logistics resource, and whether it wishes to manage the shipping process, or have it managed by another party.

As mentioned above, freight transportation software is the most economical logistics resource. It is also a resource that puts the shipper in control of the shipping process, something that 3PL does not do. For businesses that wish to outsource the shipping process, 3PL is the ideal choice. For businesses that wish to manage the shipping process without creating a logistics department, freight transportation software is the best choice.

Conclusion

A transportation management system is an integral subset of supply chain management, one that influences the cost and quality of the shipping process. Logistics software provides shippers with a way to manage freight transportation economically, without sacrificing management quality. To learn more about the benefits of freight transportation software, contact a provider of SaaS logistical solutions today.

How Many Mental Blocks To Investing Do You Have? Is a Managed Account the Answer?

Normal CTA’s, financial specialists, and individuals by and large have a mind-boggling longing to be “correct”. Who likes to not be right? You read and hear it consistently from companions, kindred merchants, (mates), that it is so vital to be correct, particularly when they make a business sector forecast or, far more atrocious when they put genuine cash into an exchange.

The measure of data which a normal CTA is presented to and needs to handle every day is stunning. Furthermore, the investigative certainty is that the human personality can just concentrate on one thing at once and take in just such a great amount of data before it is lost. That is the manner by which proficient Magicians/”Road Hustlers” bring home the bacon – Misdirection. They get your mind concentrated on one-thing while they’re pulling off their terrific dream without you notwithstanding having the scarcest intimation how they did it. Accordingly we have a tendency to create “alternate routes” to speculation and picturing helping us adapt to the huge number of data we are constantly presented to. These “alternate ways” are extremely valuable under most circumstances, however the suggestions for speculators or CTA’s of this mentalities can be most hindering, and make the likelihood of being effective in the business sectors for all intents and purposes zero, unless he or she can manage these “trolls”. The “trolls” I am alluding to are mental predispositions which are a piece of everybody’s make-up and out and out human instinct, and there are 13 (fortunate number), of them which I will list for you and give a brief clarification.

#1: Reliability Bias: This is an inclination where a man may accept something to be precise when it conceivably may not be. Illustration: Statistics and data you may use for back-testing or that comes to you crosswise over CNBC, Bloomberg, or the web are all the time loaded with mistakes. Unless you can get up in the morning and realize that the likelihood for terrible information and deception can and exists, it will set you up to make incalculable mistakes in your exchanging and contributing choices.

#2: Lotto Bias: Every CTA or speculator where it counts needs to “control” the business sectors and particularly value activity, thus most absolutely concentrate on “Passage”, where they can constrain the business sector to do a ton of things before they hop in. Be that as it may, once the position is set up, value activity is going to do what it will do. As Ed Seykota said: The brilliant tenet to exchanging is “Cut misfortunes, Cut misfortunes, Cut misfortunes, and afterward you may have a shot”.

#3: Representation Bias: CTA’s and financial specialists will accept that when something should speak to something else, that it is reality. Along these lines they accept that a day by day candle graph is the whole market or that a Fibonacci number is the whole picture. Rather, that is truly only an alternate way to interpreting a mess of data.

#4: Randomness Bias: Investor’s and some CTA’s affection to expect that the business sector is irregular and has numerous examples (twofold bottoms, Head and shoulders, Spikes, and so forth.) that are effectively tradable. Nonetheless, as I would see it the business sectors are not arbitrary. Value circulation shows that after some time markets have a vast difference, or what folks with PHD’s. call “long tails” toward the end of a Bell Curve. What they neglect to comprehend is that even “irregular markets” can have long “streaks” and therefore attempting to pick tops and bottoms can be a street to calamity.

#5: Law-of-little numbers Bias: CTA’s, financial specialists and merchants alike tend to see “designs” where truly none exist, and in all actuality it just takes maybe a couple events of this “example” to demonstrate and persuade a man that it is a “truth”. When you make a mixed drink of this specific inclination, with a Conservatism Bias (read underneath) it could make a virtual tinderbox prepared to go up on fire.

#6: Conservatism Bias: Once a broker or CTA trusts they have found an “example” and is persuaded it works (by method for filtering out or specific memory), they will do everything under the sun to stay away from situations, circumstances, and affirmation that it doesn’t work.

#7: A “Need-to-Understand” Bias: Every CTA or dealer has a need to endeavor to make request out of value activity in the business sectors and discover a basis and purpose for it. This exertion, to “discover request” will impede that CTA’s capacity to take the path of least resistance or take after the pattern on the grounds that, for absence of a superior expression, see what they need to see as opposed to what is genuinely happening before their eyes.

These are the initial 7 out of 13 exchanging/contributing inclinations that numerous CTA’s and merchants are inclined to. Once more, it is incorporated with our DNA and is human instinct. Knowing and acknowledging them is the primary key to opening the way to better contributing and change. I will catch up tomorrow with the rest of the 6 inabilities to think straight that might keep you away from above normal returns in the business sectors.