Prior to commencement in commodity trading decide on the commodities you wish to purchase before taking the step forward. If you rush into the commodity trading market with no knowledge of how commodities are perform in regards to financial viability then you are making a grave mistake and you will be doing a lot of guess work to try and make money from commodity trading. There is a reason that graphs are the best tool to judge how a commodity is going to perform. You can see how the commodity fares during the year – you will be able to easily to spot the best time to buy and sell as you will peaks and troughs where the commodity value has risen and fallen.
Commodity trading should not be guess work. Of course it is risky – however, anything that allows you to make obscene amounts of money with a minimum investment is bound to be risky. Take risks based on inferences. Take an educated guess. Commodity trading in high value products such as gold is probably not the best way to start out in the commodity trading market. This is something you need to work up too. Start with something cheap and relatively low risk. Things such as corn or wheat is a good starting point – both of these are high demand and low risk commodities.
Of course make sure you know how the market is likely to react prior to buying these commodities. Don’t purchase the product while there is very little of it on the market. This will mean you are likely to pay a high price for it. Try and wait until one of the world’s largest suppliers of the product is about to harvest it then jump on it after it has been announce and the market is saturated with it.