Golden rules to follow in commodity market.

Every trader wants to earn profitable returns consistently however they are not able to do so. Indisciplined trading practice used by traders is one the biggest reason why they are not able to earn desired returns. Indian commodity market has two major exchange namely mcx and ncdex. This market offers various good opportunities to traders, with good knowledge and trading experience traders can perform well. Financial advisory services like mcx tips can be used to get positive trade results as they are suggested by experts after performing quality research work.When you trade in commodities don't be over confident as it can affect your returns.

To trade in commodities and earn profitable returns you must know about some golden rules of this market which are discussed below:

1. Trade with fund which you own: Trading with borrowed fund is never recommended and always be mentally prepared if you loose entire fund in some worst case.This will help you trade with more flexibility and with a free mind.
2. Be patient and use a well planned trading strategy: Commodities are price volatile.Do not panic with market fluctuations.Always use a well planned trading strategy after carefully analyzing market conditions.Make all trading decisions on the basis of facts.
3. Don't be biased: While trading in commodities don't be biased by restricting yourself to trade in some particular commodity.Trading in two or more commodities will help in maintaining a diversified portfolio and manage risk in an optimum manner.
4. Document your trade: While trading note down the reasons supporting your every trade and save the final chart.This will help in tuning a fine trade setup.You can refer this document on later stage to understand you trading logic in future as well and review them to improve your trades.
5. Take responsibility of your own trade: You are trading using your hard earned money so no one else is responsible for the outcomes of your trade.Use a trading strategy with which you are comfortable and understand fully.The decisions which you take will decide the returns earned at the end.
6. Follow the market trend: Don't trade against the current market trend.Following the market trend ensure your good returns to certain extent.Especially if you are new to market or do not have sufficient knowledge it is advised to trade along the market trend.
7. Do not use your entire capital in one trade: Avoid taking position in market using your entire capital.Instead plan more number of trades using your capital.This will bring you more opportunities.Ideally 5% of entire capital is recommended to be used in one trade.

8.Have one financial advisor at a time: Have single financial advisor and follow suggestions like best mcx tips, currency tips and more of one expert as multiple guidelines will confuse you more.Be very careful while you select your financial advisor.

These are few golden rule which trades should follow when they trade in different commodities.Do not have unrealistic expectations from market and never use false trading practices.It may help you in earning good returns on a short term basis, but to sustain in market on long term basis using a well disciplined trading practice is must.

I am a financial analyst. I always like to read and explore more about market.