Equity v/s Commodity Trading : Better Trading opportunities

#1
whats relatively easy for short term / intraday trading : Equity or Commodity. Easy in the sense more predicatble long term momentum , less volatile , clear timepoints where inst would be volatile like examplle, oil data released on wedensday etc
 

ashu1234

Well-Known Member
#2
Commodities are best at any time. Understanding equity fundamentals is not everybody's cup of tea, too many seen and unseen factors whereas commodities are cyclical and based on demand supply, major events and inventory are scheduled mostly so major movement can be taken into consideration in advance and can be used to our advantage. with recent takeover of FMC by SEBI soon we will have options in commodities too which will make it even more exciting.
 

arora

Well-Known Member
#3
I Say commodity. plus less tax on commodity. only disadvantage it has we have to sit in front of computer from 10 to 11. crudeoil natural gas , lead i prefer for swing trading
 

mt4trader

Well-Known Member
#4
commodity is better than stocks.i mean mcx is better than nse.
only effects international issues, and those news are released predefined exact time, unlike in india. i never see any news release by indian exact time.
there will be enough time to take decision.
you have a choice to select depending upon your risk taking, asian session, Europe and USA session.
world market not effected by few brokers.
 

narangji

Well-Known Member
#5
whats relatively easy for short term / intraday trading : Equity or Commodity. Easy in the sense more predicatble long term momentum , less volatile , clear timepoints where inst would be volatile like examplle, oil data released on wedensday etc
I beg to disagree with everyone here, here are some known facts that nobody can deny.

1. They are both the same, they have the potential to wipe out your capital in matter of days, months.

2. There is nothing as easy, unless you get your facts right.

3. If you are unsure, dont trade, Seek help. Learn from traders here, be a part of the group thats active and they will give you insights everyday.

4. Spend atleast 20 days of reading most important articles on TRADER Ji and search other websites for points

5. Find what are you good at, drink only what you can enjoy be it coffe or tea ( apples or oranges) equity or commodity.

6. ULTIMATE GOAL -> If you can be in profit without a fluke and develop your own trading plan, money management, STOP LOSS AND EXIT STRATEGY


I hope point 6 is what you should work on before anything else or don't trade.
 

ashu1234

Well-Known Member
#6
I beg to disagree with everyone here, here are some known facts that nobody can deny.

1. They are both the same, they have the potential to wipe out your capital in matter of days, months.

2. There is nothing as easy, unless you get your facts right.

3. If you are unsure, dont trade, Seek help. Learn from traders here, be a part of the group thats active and they will give you insights everyday.

4. Spend atleast 20 days of reading most important articles on TRADER Ji and search other websites for points

5. Find what are you good at, drink only what you can enjoy be it coffe or tea ( apples or oranges) equity or commodity.

6. ULTIMATE GOAL -> If you can be in profit without a fluke and develop your own trading plan, money management, STOP LOSS AND EXIT STRATEGY


I hope point 6 is what you should work on before anything else or don't trade.
I think you forget to look out what he means by easy: he has given different parameters based on which he asked opinions.
You yourself said equity and commodities as apples and oranges and in first point said both are same, moreover you focused on fundamentals too, so all contradictory points.
Equity and Commodities are very different asset class and trading in them is very different, only common thing is you trade them alike just like you hit a ball with base ball and cricket bat but both the games are very different.

Some further points which make commodities very distinct are:
Technical studies: Proven point the more liquid an instrument is more chances that technicals work. Commodities(non-agri) are one of the most liquid instrument their turnover surpasses that of Stock market so surely a commodity trader using technicals as his one of the main tools finds an edge.

Fundametals: Fundamental studies are very different, valuation of different scrips with different methods make it very difficult to assess the right fundamental values, whereas commodity fundamentals are based on demand and supply, clear data and storage points makes it easy even for a normal trader to asses fair value.

Point 2 I agree, but point 3, 4 and 5 I'll say wont help you. when you do trading you are on your own. I'll give you a example from the traderji itself, majority of the traders are working as per perfect utopia of yours given points 3-4-5, watch equity threads where every method is given discussed and displayed successfully but you'll still find traders are struggling for last 5-6 years. So when you trade its all you and you only.
 

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