For beginners, please respond on investment in commodities

HI , I m new here, how could i start up in commodities ?

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Hi,
Learn how to use search engines. I typed in “how could I start up in commodities trading” into Microsoft Copilot (now an integral part of Edge browser) and got this:

Starting a commodities trading business can be an exciting venture, but it requires careful planning and understanding of the market. Here are some steps to help you get started:

  1. Learn the Basics of Commodities Trading:
  • Understand what commodities are and how they are traded. Commodities include raw materials like metals, agricultural products, and energy resources.
  • Research the different types of commodities and their price drivers.
  1. Select Your Market:
  • Decide which commodities you want to trade. Common categories include:
    • Metals: Gold, silver, platinum, copper.
    • Energy: Crude oil, natural gas.
    • Agricultural Products: Corn, soybeans, wheat, coffee, sugar.
    • Livestock and Meat: Lean hogs, live cattle.
  • Choose the market that aligns with your interests and expertise.
  1. Choose a Trading Platform:
  • Open an account with a reputable broker or trading platform. Consider factors like fees, available commodities, and ease of use.
  • Platforms like CMC Markets offer commodity trading options.
  1. Develop a Trading Plan:
  • Craft a strategy that outlines your risk tolerance, investment goals, and trading approach.
  • Consider factors like technical analysis, fundamental analysis, and timing.
  1. Understand the Risks:
  • Commodities trading can be volatile. Prices can fluctuate due to supply and demand, geopolitical events, and economic factors.
  • Be prepared for potential losses and manage your risk effectively.
  1. Start Small:
  • Begin with a demo account to practice trading without real money.
  • Once you’re comfortable, start with a small capital amount.
  1. Stay Informed:
  • Keep up with market news, economic reports, and global events that impact commodities.
  • Monitor price movements and adjust your strategy accordingly.

Remember that commodities trading involves risks, but with proper knowledge and discipline, it can be a rewarding venture. Seek professional advice and stay informed as you embark on your commodities trading journey! :herb::chart_with_upwards_trend:

For more detailed guidance, you can explore resources like Master How to Learn Commodities Trading1 and Starting a Commodity Trading Business in the United Kingdom2.

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Seconding @Mondeoman
@saniyaparveen take them step by step. Commodity trading ain’t any way different from other types of trading. All you need is the right knowledge with the right tool and the right mindset.

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