Commodity markets have long attracted investors and traders since trading and investing in commodities is an excellent way to diversify one's portfolio beyond typical stocks.
investors can move away from stocks and balance their portfolios during periods of stock volatility. Traders use the commodity market to profit from the fluctuation of commodities prices. Natural gas, oil, gold, silver, soybeans and other products are good examples.
Unlike stocks, commodities are not attached to the value of a company. They can be volatile since they change daily based on supply and demand factors, like weather or actions by the U.S Treasury that affect their price volatility. And like when you overeat chili, you end up feeling sick; extreme volatility in your portfolio can give some portfolio managers an upset stomach. So what should they do? The answer is simple: get diversified!
For more information on day trading futures and commodity trading courses, reach out to COMMODITIES UNIVERSITY!
There are many advantages of trading in commodities. Let us understand those in detail with examples.
More Information : https://www.commoditiesuniversity.com/