Trading Commodities or Stocks By What is more profitable today, trading commodities
or stocks? Which is safer? Certainly today’s stock volatility can lead to substantial profits
when traders successfully use technical analysis tools such as Candlestick charts to follow
and predict market sentiment. And you can lose in the stock market if you don’t use
tools like Candlestick signals to assess market sentiment. Commodity trading can be profitable.
There may or may not be a different set of fundamentals than when trading stocks. And
Candlestick chart patterns had their start in trading commodities, rice, in ancient Japan.
In thinking about which is better today, trading commodities or stocks, there are a few issues
to be considered. Factors That Move Markets Economic uncertainty and a valid concern about
the solvency of nations have introduced a note of panic into today’s stock market. But,
stocks that depend upon economic growth are more volatile than consumer products stocks.
A double dip recession may reduce the sales of computers, cars, new homes, and luxury
items but it very likely will not do much to change sales of household bleach, hand
soap, and other common household items. In trading commodities, such as with gold futures,
traders benefit from economic uncertainty but oil futures fall in response to the threat
of an economic downturn. On the other hand, wheat, soybean, and corn futures are typically
less affected by the economy and more affected by global weather patterns, which in turn
affects harvests. Aggressive or Playing It Safe Traders can choose trading commodities or
stocks to benefit from today’s chaotic markets and they can also play it safe by picking
stocks or commodities to trade that are less affected by the economic drivers of today’s
markets. No matter whether one is trading commodities or stocks the trader does well
to use both fundamental and technical analysis to make profits. Fundamental analysis gives
traders a clear sense of the potential in an individual stock or commodity. But it is
technical analysis with Candlestick chart formations that gives the trader an objective
view of market sentiment. In times like these the psychology of trading can destroy even
the most well designed trading strategy. Greed and fear have ruined many well-made trading
plans. But with easy to read Candlestick analysis signals as a guide in trading commodities
or stocks, traders can profitably navigate the ups and downs of the market. Using Candlesticks to Light the Way In short, both stocks and commodities offer
market volatility as a path to profits. Also, in trading commodities or stocks one can find
more stability in some equities than in others. In both markets traders can buy or sell directly
or trade options. In both markets traders are well advised to do technical analysis
with Candlestick charting techniques in order to obtain and maintain a clear view of the
market and its immediate potential. Candlestick traders can profit by buying stocks or commodities,
selling stocks or commodities, selling short with either, or staying out of either market
based on Japanese Candlestick trading signals that have served traders well and gained traders
profits for centuries. For more insights and useful information about
trading stocks, options, futures or Forex, visit