Delving into the world of commodities
I bought my first commodities contract just a bit ago. I picked up a soybean contract. I'm keeping things very small and simple as I try to get the hang of this stuff.
One of the reasons I am gradually moving my trading account to IB is because I want more diversity in my trading portfolio. Instead of just stocks, which is 100% of my IRA at the moment, I want exposure to other markets as well. Commodities fit the bill very nicely. I'll be tracking a few grains, meat, metals, financials and currencies. This weekend I'll be filling in a chart with expirations, etc. so I don't do anything stupid! They are all different and they all expire at some point and need to be rolled over into the next contract month.
As part of my education, I read a book I bought more than a year ago, but never opened. Big mistake letting it sit there. It is an excellent read, and an easy read, too. I knocked it off in two nights. It is "Hot Commodities - How Anyone Can Invest Profitably in the World's Best Market" by Jim Rogers. It is not very technical in nature; rather, it is more the "whys" instead of the "hows" of commodities trading and is an excellent introduction to the subject. It is well written and a fun read. Highly recommended. I'm a technical analyst and the author is pure fundamentals, which I thought would be a turn off for me. I was wrong. I thoroughly enjoyed the book.
I'm now reading "Trading Commodities and Financial Futures" by George Kleinman. I'm not very far into this one, but so far I think I'm going to really like it. I think it will get into the technical aspects of the trade a little deeper.
This weekend I promise to update my stock portfolio and put up a bunch of charts. It's a bit crazy around the house with the painting going on, so I haven't had much time to sit at the computer lately. Work has also been keeping me busy through lunch, so I haven't been scanning for buying opportunities mush either. Hopefully tomorrow I can get some portfolio work done.
Woot! It looks like I'm in the green already with my beans:>) Here's the chart:
Nifty trend there. Hopefully I didn't buy the top of it. These things start trading a second shift at 6:31pm Central time until 6:00 am. They then shut down for 3 1/2 hours and trade again from 9:30am to 1:15pm Central Time. I bought on the night shift. I don't know if that's bad.
One of the reasons I am gradually moving my trading account to IB is because I want more diversity in my trading portfolio. Instead of just stocks, which is 100% of my IRA at the moment, I want exposure to other markets as well. Commodities fit the bill very nicely. I'll be tracking a few grains, meat, metals, financials and currencies. This weekend I'll be filling in a chart with expirations, etc. so I don't do anything stupid! They are all different and they all expire at some point and need to be rolled over into the next contract month.
As part of my education, I read a book I bought more than a year ago, but never opened. Big mistake letting it sit there. It is an excellent read, and an easy read, too. I knocked it off in two nights. It is "Hot Commodities - How Anyone Can Invest Profitably in the World's Best Market" by Jim Rogers. It is not very technical in nature; rather, it is more the "whys" instead of the "hows" of commodities trading and is an excellent introduction to the subject. It is well written and a fun read. Highly recommended. I'm a technical analyst and the author is pure fundamentals, which I thought would be a turn off for me. I was wrong. I thoroughly enjoyed the book.
I'm now reading "Trading Commodities and Financial Futures" by George Kleinman. I'm not very far into this one, but so far I think I'm going to really like it. I think it will get into the technical aspects of the trade a little deeper.
This weekend I promise to update my stock portfolio and put up a bunch of charts. It's a bit crazy around the house with the painting going on, so I haven't had much time to sit at the computer lately. Work has also been keeping me busy through lunch, so I haven't been scanning for buying opportunities mush either. Hopefully tomorrow I can get some portfolio work done.
Woot! It looks like I'm in the green already with my beans:>) Here's the chart:
Nifty trend there. Hopefully I didn't buy the top of it. These things start trading a second shift at 6:31pm Central time until 6:00 am. They then shut down for 3 1/2 hours and trade again from 9:30am to 1:15pm Central Time. I bought on the night shift. I don't know if that's bad.
posted by mccrok @ 9:36 PM
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