Bridgestone Global Partners Offers More Free Investing Tips in Bull Market
Any investor who has invested in a stock bull market recognizes the fact that during the four or five year period of a mainstream bull market, there are some unavoidable price corrections along the way.
- (1888PressRelease) September 13, 2012 - Commodity trading in not distinctive yet commodity bull market can even last for 15 years. Some trading experts agree that the existing current commodity bull market commenced in early 2002 and its present price high was documented in March 2006.
The most convenient way to track down the commodity market is through the Bridgestone Global Partners' Commodity Research Index which comprises various futures contracts in some commodity sectors supported with extensive free investing tips. Commodities such as energies, meats and livestock, metals, grains and softs are all evaluated and utilized to find an average. The firm's CRI is to commodities as what the Dow Jones Industrial Average is to stocks.
How should a trader invest in the exchange traded commodity markets? Bridgestone Global Partners presented two means to purchase and sell the commodity markets- the futures markets and the options on the futures market. Traders must consider the advantages and the disadvantages of these two methods before investing in either. The advantages of investing in futures trading are the possibility of increased liquidity and the tick for tick changes in the futures contract while its major disadvantage is the increased potential risk of losing capital. If a futures contract positions against the investor, there is a great possibility of a margin call. This simply means that a trader must place in more capital to maintain the existing position. That is to say that the hypothetical loss on a short futures contract can be unrestricted.
The advantages of purchasing commodity options are that the possibility of capital risks are restricted to the total purchase price of the option as well as there is still a hypothetical potential for limitless profit position of a call option while the disadvantages are that the options merely receive a percentage of the futures move as well as options become a negative asset. Visit the Bridgestone Global Partners' website for more information.
Whether a trader chooses futures trading or futures option trading, he or she must be equipped with trading strategies in order to succeed in this trading endeavor. Investors must not go against the market trends as well as avoid buying puts or short futures in a commodity bull market. Investors are also advised to use stop orders to limit capital loss and diversify in various commodity market sectors to boost their investments. At any given moment, one commodity sector can outdo the other sectors hence it is practical not to put all capital in just one sector.
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