my articles | learn more about DirectoryM articles | contact us | advertise with us   
 
SEARCH:
Quick Search Results

Searching...

ABOUT US | VIEW ALL FEATURED ARTICLES | VIEW ALL TOPICS | VIEW ALL REGIONS | DM MOBILE | DM BLOG

Commodity Trading Maryland

Commodity Trading, in essence, is an agreement to buy or sell at the current price based on predictions of the future price. It is a sort of educated gambler, with the first seller ensuring that they will not face a loss should prices drop, and the second ensuring that they will face a profit if prices rise. Everyone likes the idea - small investment, and potentially huge returns; the only uncertainty, of course, is whether prices will actually go up or down. If they go down, the first seller wins - they have ensured that they will receive the original price agreed upon, rather than losing money as the market drops. If prices go up, however, the second seller (the original buyer) wins - they have made a profit without doing any work.
1. Local Companies
2. Intro to Commodity Trading
3. The Risks of Commodity Trading
4. The Business of Trading
5. Featured Local Company

1. Local Companies

TCR Engineering Services
240-505-0739
14625 Baltimore Ave, Box 109
Laurel, MD
Advantage Sales & Marketing
(410) 964-1600
9198 Red Branch Rd
Columbia, MD
Impact Sales Inc
(410) 381-1239
9685 Gerwig Ln
Columbia, MD
Merrill Lynch
(410) 547-5000
100 E Pratt St
Baltimore, MD
Merrill Lynch
(202) 659-7222
1850 K St NW
Laurel, MD
Oakdale Food Sales
(410) 987-4055
805 Oakdale Cir
Millersville, MD
Eden & Tye Incorporated
(443) 577-1200
7483 Candlewood Rd
Hanover, MD
Worldwide Commodities Llc
(410) 744-7172
700 Geipe Rd Ste 204
Catonsville, MD
Huguely Companies the
(301) 652-7386
4424 Montgomery Ave
Bethesda, MD
R M I & Associates Inc
(410) 964-1601
9198 Red Branch Rd
Columbia, MD


2. Intro to Commodity Trading

As an example, lets examine a transaction between a wheat farmer and a large baking company that needs massive quantities of wheat. Before a crop is even planted, both buyer and seller are predicting and anticipating any rise or fall in the market, speculating on any factors that might drive prices up and down. The wheat farmer, worried that prices are going to drop, will make an agreement with the baker to sell the upcoming crop of wheat at exactly the current price (say, $3.00 a pound); and the baker, hopeful that wheat prices will go up, will agree. This means that in six months when the crop is ready to sell, the transaction will occur at exactly $3.00 a pound; so if the market price has dropped to $2.00, the farmer made a secure profit, while if it has risen to $4.00 the baker wins out.

This is the gist of commodity trading: educated guesses as to the future of the market for any given product or commodity. Predictably enough, the commodity trading market has gained a reputation for high-risk investments alongside its reputation for high-potential gains; those who trade and invest wisely, however, are those who take the time to evaluate both product and market, rather than making rash gut decisions or impulse decisions paralleling the use of a giant economic slot machine for business. With good judgment and discernment, commodity trading can be both rewarding and profitable – like any business, it just takes time and thought.

3. The Risks of Commodity Trading

No pain, no gain, the saying goes, and it can easily be applied to the hazards of trading. Perhaps that should be adjusted to say no risk, no return, as the difficulties involved in investment almost always relate to the balance of risk and the potential returns. Because Commodity trading does have the potential to make the investor a much larger profit than his initial investment, the “return” is very high – but then, so are the risks.

The truth is that no matter how many trained economists there are studiously examining market trends and the state of world trade, no one can ever successfully predict the future of the market all the time. Some are better than others, and others are less reliable, but with commodity trading, there is no insurance; you can never know for sure if your money will return inflated or depleted.

Bruce Babcock, owner of Reality Based Trading Company, makes the following analogy concerning commodity trading. “Think of yourself walking into a gambling casino in Las Vegas or Atlantic City. You decide to play roulette. The table has a $5 minimum bet and a $5,000 limit, which happens to be your total bankroll. If you place a $5,000 bet on red, you should not be surprised if you immediately lost your $5,000. On the other hand, if you made only $5 bets, you could play for a long time and probably not lose very much at all.”

This comparison is as applicable as it is understandable – in commodity trading, your risks will relate to your returns. Investments of a few hundred dollars can be made over and over with only the risk of a few hundred dollars, while a seventy thousand dollar trade is a seventy thousand dollar risk. Of course, the returns are comparable as well – a hundred dollar investment may garner a fifty or even seventy-five dollar return, but a seventy thousand dollar return could nearly double, turning itself into a hundred and twenty thousand dollars – if, of course, your instinct proves correct.

4. The Business of Trading

Most people are more than a little shy of taking such risks, although a few are so drawn to it that they do it over and over again whether they make a profit or not. There are, however, alternatives to the skydiving lottery-card trading done by so many. The most notable of these options is the mentality of running your trading like a business, with similar attitudes towards investments, returns, risks, and evaluations. A business does not generally make a huge rash decision such as buying a dozen suckling pigs to raise in the back of a coffee shop; rather, a successful business will examine itself, its customers, and its needs, and buy and sell accordingly.

The gambling analogy is again useful here, as we consider the actions of a profitable business. If a successful business, say a sandwich shop, has $3,000 dollars to invest in itself, it is not likely to shoot the entire wad on the newest expensive brands of olives or salami. Commodity Trading is not about staking every penny on a hopeful product and praying that every customer will be dying for the taste of new Olivia’s Marinated Olives; a wise commodity trader spreads his assets throughout a number of promising ventures, out of which at least one is likely to pay off.

5. Featured Local Company

TCR Engineering Services

240-505-0739
14625 Baltimore Ave, Box 109
Laurel, MD
http://www.tcreng.com

Read more about Commodity Trading

Regional Articles
- Commodity Trading Aberdeen MD
- Commodity Trading Abingdon MD
- Commodity Trading Annapolis MD
- Commodity Trading Arnold MD
- Commodity Trading Baltimore MD
- Commodity Trading Bel Air MD
- Commodity Trading Beltsville MD
- Commodity Trading Berlin MD
- Commodity Trading Bethesda MD
- Commodity Trading Boonsboro MD
- Commodity Trading Bowie MD
- Commodity Trading Brooklyn MD
- Commodity Trading Burtonsville MD
- Commodity Trading Cambridge MD
- Commodity Trading Capitol Heights MD
- Commodity Trading Catonsville MD
- Commodity Trading Chestertown MD
- Commodity Trading Chevy Chase MD
- Commodity Trading Clinton MD
- Commodity Trading Cockeysville MD
- Commodity Trading College Park MD
- Commodity Trading Columbia MD
- Commodity Trading Crofton MD
- Commodity Trading Cumberland MD
- Commodity Trading Damascus MD
- Commodity Trading Derwood MD
- Commodity Trading District Heights MD
- Commodity Trading Dundalk MD
- Commodity Trading Easton MD
- Commodity Trading Edgewater MD
- Commodity Trading Edgewood MD
- Commodity Trading Elkridge MD
- Commodity Trading Elkton MD
- Commodity Trading Ellicott City MD
- Commodity Trading Essex MD
- Commodity Trading Fallston MD
- Commodity Trading Finksburg MD
- Commodity Trading Forest Hill MD
- Commodity Trading Fort Washington MD
- Commodity Trading Frederick MD
- Commodity Trading Frostburg MD
- Commodity Trading Gaithersburg MD
- Commodity Trading Germantown MD
- Commodity Trading Glen Burnie MD
- Commodity Trading Greenbelt MD
- Commodity Trading Gwynn Oak MD
- Commodity Trading Hagerstown MD
- Commodity Trading Halethorpe MD
- Commodity Trading Hampstead MD
- Commodity Trading Havre De Grace MD
- Commodity Trading Huntingtown MD
- Commodity Trading Hyattsville MD
- Commodity Trading Jessup MD
- Commodity Trading Joppa MD
- Commodity Trading Kensington MD
- Commodity Trading La Plata MD
- Commodity Trading Lanham MD
- Commodity Trading Laurel MD
- Commodity Trading Leonardtown MD
- Commodity Trading Lexington Park MD
- Commodity Trading Lusby MD
- Commodity Trading Lutherville Timonium MD
- Commodity Trading Mechanicsville MD
- Commodity Trading Middle River MD
- Commodity Trading Millersville MD
- Commodity Trading Montgomery Village MD
- Commodity Trading Mount Airy MD
- Commodity Trading North East MD
- Commodity Trading Nottingham MD
- Commodity Trading Oakland MD
- Commodity Trading Ocean City MD
- Commodity Trading Odenton MD
- Commodity Trading Olney MD
- Commodity Trading Owings Mills MD
- Commodity Trading Oxon Hill MD
- Commodity Trading Parkville MD
- Commodity Trading Pasadena MD
- Commodity Trading Pikesville MD
- Commodity Trading Potomac MD
- Commodity Trading Princess Anne MD
- Commodity Trading Randallstown MD
- Commodity Trading Reisterstown MD
- Commodity Trading Riverdale MD
- Commodity Trading Rockville MD
- Commodity Trading Rosedale MD
- Commodity Trading Salisbury MD
- Commodity Trading Severn MD
- Commodity Trading Severna Park MD
- Commodity Trading Silver Spring MD
- Commodity Trading Stevensville MD
- Commodity Trading Suitland MD
- Commodity Trading Sykesville MD
- Commodity Trading Takoma Park MD
- Commodity Trading Temple Hills MD
- Commodity Trading Thurmont MD
- Commodity Trading Towson MD
- Commodity Trading Upper Marlboro MD
- Commodity Trading Waldorf MD
- Commodity Trading Westminster MD
- Commodity Trading Windsor Mill MD
Related Local Event
Brazil Economic Conference
Dates: 10/13/2008 - 10/13/2008
Location: Mayflower Hotel
Washington DC MD
View Details
Rate Article
     
Articles Insider
Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin
Topics:
Advertising Educational Content Home Appliances Real Estate Resources
Business Services Entertainment Home Electronics Software
Career Family Home Services Technology
Cars Fashion Internet Telecommunications
Chamber of Commerce Financial Services Legal Trade Shows
Computer Hardware Franchise Miscellaneous Travel
Construction Health Nightlife Weddings
Education Holidays Online Database World History
Articles.DirectoryM.com | Search | About Us | Contact Us | Mobile | Blog | En Español
Copyright © Interaction Media Group. All rights reserved.