According to experienced Commodity Trader – Rowan Relton, commodity trading entails the buying, selling or trading in raw products which can be anything from cocoa, oil, gold, sugar and any other primary economic products you can think of. Commodities are the foundation of any economy and they are the basis on which every other thing are birthed. Hence, trading in commodities can be a smart decision anyone can ever make as it promises huge returns on investment.
However, to be successful in any trading, there are keys to hitting it right and commodities are not exceptions. These keys are strategies that make the difference on whether you go with a lot of gains or you lose it all at a go. That is why we spoke to one of the best in the trading world, Rowan Relton, a dedicated trading professional to shares the secrets of commodity trading. Keep reading!
‘Commodity trading is far different from any other financial instrument. It’s a different ball game and any prospective investor irrespective of other trading experience needs to master commodity trading on its own,’ says Rowan Relton.
Discover your niche
Commodity worldwide and diverse and you might have to choose and stick to a market or two that works very well for you. The point is that very few successful traders have understood and can trade all the aspects of the commodity market well. Therefore, if you are just starting, you might need to find your niche, know the ins and outs, and get started, says Rowan Relton. If you know about precious metal, you can consider this aspect and if yours is oil, then you might want to become an oil trader. However, discovering your market might require some trial and error. You might have to try different market segments to know which one you are doing well in and which one is giving you a tough time. Within a short period of time, you will discover your niche.
