Commodities

There are many fools trading in the worldwide markets. Trading stocks, forex or commodities anyone can make these dumb trading mistakes. But to be a highly successful trader you must admit to your mistakes and act to fix your previous follies.

Trade Without a Plan

Like many of those who are engaged in this kind of trading business, I strongly believe that we are presently in the super cycle of the global commodities as we generally see the commodity prices upward trend that is expected to remain the same way for at least 10 years. This is important to keep in mind before we can really examine the different factors that influence the trends of the global commodities. While we may corrections that are only short-term, the substantial growth in the trend is still ahead of us.

Major falls in Commodities overnight Lead to Minor Correction: Overnight in US trade (- yes I just woke up!) the commodities took quite a hit. Aussie dollar is well down and analysts expect the market to open a lot lower than yesterday. Looks like a correction... The analyst being interviewed on the radio said that underlying supply and demand fundamentals for the commodities are still good - China still needs the metals. Anyway, enjoy the new trading opportunities - and for those who had open positions, I hope you had your stop losses!

Be more proactive on petrol price hikes. As traders, you should be asking yourselves where the money is being made constantly, and thinking if you can get a piece of the action. You can trade Oil on the futures exchange. Sure, if you don't have a futures broker or no experience in futures you can always learn. Anyway, petrol prices are set to rise above $1.50 a litre in Australia.

Is there an emerging bubble in Australia’s uranium stocks? Well, the flood of uranium explorer’s listing on the Australian Stock Exchange who aren’t even turning over a cent are seeing their stocks rise in price dramatically. But is it a sound investment fundamentally? Is the demand for uranium going to grow in future? That is the question a lot of people are asking since the growing demand for uranium will be tomorrow’s power supply. One of the barriers that nuclear energy has to overcome is that nuclear = bad because of the nuclear waste it leaves, hence no supply for uranium needed. John Borshoff, chief executive of Paladin a uranium stock said, "So we're looking at a paradigm shift here and that paradigm shift has happened at the speed it's happened because the nuclear reactor utilities were working behind the scenes." (Paladin Resources, which is up five-fold since this time last year and 50-fold in a couple of years.)

Have you missed the boat? Who knows - look at your charts... However, in 2002 the uranium industry was dead. Now it is active as ever, with deals being made to export the commodity with China and plans to export it to India soon coming. Think about this: Paladin increased in price 5 times compared to last year - hows that for returns!?

The Australian dollar opened three quarters of a US cent weaker on Friday as a drop in commodity prices pulled the local unit lower. At 7am (AEDT), the local unit was trading at US74.73¢, below Thursday's close of US75.48¢. Overnight, it hit a high of US75.40¢ and a low of US74.60¢.