TRADING COMMODITIES IS NOT A SIMPLE JOB

There are too many portfolios of investment in the present financial market in the world. Like common stock, preferred stock, debenture, bond, treasury bill, commodities spot, futures, options etc. As there are numbers of portfolios, there are many confusions for selection a best portfolios. The market is being tough every day. The numbers of ideas and experts are increasing in increasing rate. Due to those things and high competitions in the financial market it is going more challenging and tough than previous years and decades. There is high risk in the market for trading due to the highly volatile market we need to be more competitive for booking profit in the position.
Commodity future, spot, options etc are some portfolios which is the leading investment opportunity in the context of globalization of trading. There are numbers of commodities including precise metal like Gold, Silver, Copper, energy like crude oil and other so many more are trading in the large volume. Commodity trading is one of the best portfolios for a good trader, investment company and other trading organizations. As there are many opportunities for earning there is high risk of trading and loosing the investment. So before investing in commodities market we need to be alert and competitive enough for trading. There are many trading strategy and mechanism which we compulsorily need to know.
We need to analyze the market deeply before starting trading. There mainly three types of market analysis;
> Sentimental Analysis
> Fundamental Analysis
> Technical Analysis
There are only three analysis but they are more difficult and unpredictable easily. We can not easily know what they are due to the variety of the analysis included with them. Simply the sentimental analysis is knowing and predicting the feeling of general investors and their opinion of trading. It is simple in word but more difficult out of three analysis. Generally we can not predict whether to buy or not. For example the farmers are producing rice in their farm in monsoon season. At the beginning of monsoon it rains heavily but the later it doesn't rain. Now the matter is regarding the sentiment of general investors. It can be interpreted in different ways so the sentiment may be different. So we need more years to understand such types analysis.
Fundamental Analysis is another analysis which is directly related to the economic, financial and political environment. As the environment improves the impact will be positive and vice versa. The technical analysis depends in  the previous scenario of the market. It is one of the important analysis of the market.
These three types major analysis are most important analysis which we must know and be friendly with these terms. Smarter people may earn more returns in their investment and can be happy if they are more dedicated toward the analysis of the market.
Finally, It is recommended that please be smart, prepared and competitive while investing in the commodities market otherwise your investment will be unproductive then you will be the looser of your fund in very short period.