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Life Is Good With Commodity Day Trading


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Advanced Trading Instruments Make Commodity Day Trading More Affordable

Commodity Day Trading can be a lot like the Kentucky Derby. Horse racing is sometimes referred to as the Sport of Kings. Presumably, this is because it costs so much money to run a profitable stable, that amateurs and commoners are precluded from tying up such a tremendous amount of their capital on the hobby. For many years, commodity day trading also required such large amounts of upfront capital that it simply was not practical for talented, but underfinanced, players to take a shot at it.

That all changed with the introduction of the so-called e-mini futures contract. E-minis greatly broadened the trading base by offering futures contracts in much more digestible bites than the big brother commodity contracts offered. Who really needs forty thousand gallons of gas anyhow, right?

Commodity Day Trading Is Based On Tangible Data Sources

What makes commodity day trading such an interesting possibility is that one grain of corn is about the same as any other grain. The same cannot be said of different automakers, big box retailers, or any individual components of any specific stock market group. This lack of individual distinction allows traders to browse through the reams of economic data compiled by governments and industry trade groups, and discern a pattern of movement.

Once that pattern has been detected, it no longer matters which particular pork belly one buys, only how many one can control and at what price.  Much of the intangible guesswork involved in picking particular winning stocks in any industry group is eliminated. Car buyers could be thronging the showrooms, but this will not do you much good if you placed your bets on Studebaker or Yugo. Commodity day trading eliminates that need to not only ride a trend, but to pick a winning horse in the race as well.

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