Effective MCX Trading Tips
MCX stands for Multi Commodity Exchange is an exchange like NSE and BSE which is located in India. MCA is a place where you can trade commodities.
MCX provides a platform to the commodity traders which help them to trade.
MCX provides the facility to trade online and many facilities like providing a platform for risk management.
It was established in 2003 based in Mumbai India. It provides options trading in gold and futures. You can trade in energy, metals, bullion, and various agriculture commodities.
It provides many facilities to the traders like to trade online which helps a trader to trade quite easily.
Products In MCX
MCX provides various products to traders to trade which gives traders many options to trade according to the market.
There are a lot of products traded in MCX like Bullion, Base Metals, Energy, Agri Commodities.
Bullion: Bullion metals are considered as very precious metals. Like Gold, Gold Mini, Gold Guinea, Gold Petals, Silver, Silver Mini, Silver Micro.
Base Metals: Base metals are metals that are not considered precious. Like Aluminium, Aluminium Mini, Brass, Copper, Copper Mini, Lead, Lead Mini, Nickel.
Energy: Different kinds of energy you can trade in MCX like Crude Oil, Crude Oil Mini, Natural Gas.
Agri Commodities: Various agriculture commodities are traded in MCX like Black Pepper, Cardamom, Castor Seed, Cotton, Crude Palm Oil, Mentha Oil, RBD Palmolein, Rubber.
MCX Trading Tips
MCX market is very unpredictable and volatile at the same time. So you can predict easily it all depends on many things like the market.
So if you are a beginner or have experience in the market you need some tips to survive in the market. Here are effective MCX trading tips:
Don’t Hurry: Many time traders in overconfidence, they take some unnecessary steps due to which they ended up losing money. So always keep patience while trading in the MCX.
Invest In Different Product: MCX market is very volatile and can go everywhere so do not stick to a single commodity. It is the best strategy to divide money into multiple products so you can lower the risk,
Advise: If you are a beginner so don’t hesitate to ask for the help of someone who is having more experience than you.
Stay Away From Rumors: Many times traders hear rumors about some product giving big profit and put whole money on that and then lost it. So always start with a small initial investment and don’t go for rumors.
Watch Market: Keep the attention on the market and always watch that product on which you have traded.
Stop Loss: Always maintain stop loss to minimize the chances of a big loss. MCX market is very volatile so always try to lower the risk and try to trade safely.
So it is very important to maintain the stop loss.
This is effective MCX trading tips.
MCX Trading Strategies
To be a successful trader in MCX you should have an effective strategy. An effective strategy gives you the right way of trade in every kind of scenario.
Having a strategy is very important for every trader but especially for those who are a beginner and don’t know anything about the market.
Position Trading: Position trading is something in which traders look for longer-term charts and trade on that.
It is not active trading as traders hold the trade for long terms after getting the product.
Day Trading: Day trading is like buying and selling any product on the same day. It’s like the trader is buying any product and then selling it on the same day or vice versa.
Seasonality: There is some product whose demand increases in any particular season. That is the perfect time to buy or sell that product which gives you max profit.
Scalping: Scalping is like getting profit in the minor fluctuation at the price of the product which you have. It is a very popular strategy.
Advantages Of Multi Commodity Exchange Trading
Diversify Investment: The biggest benefit of MCX trading is that you can diversify your investment by investing in different products.
As MCX multiple products in which you can trade.
Profit: In MCX you can make a big profit as the movement in the MCX market is very big. It depends on the market as well. But it provides you the opportunity to invest in and make a profit from it.
Growth: It gives you higher growth opportunities. As the demand for the commodity increases from time to time so it gives you the opportunity to grow in the market.
Protection From Inflation: At the time of inflation, when the economy is dipping and the value of money decreases.
After that, the price of a commodity usually goes up so the price of raw material also goes up. So in this scenario, you can take advantage of that movement as well.
Disadvantages Of Multi Commodity Exchange Trading
Volatile Market: It is a very volatile market as compare to other as it swings majorly and which is very risky for traders to trade so it is important for traders to have enough experience or have guidance.
Speed Of Trading: Trading in MCX is a bit time-consuming. As if you want to trade then you have to contract to broker then inform him about the product.
Then he will check and place an order for you. It is a time-consuming process.
Physical Delivery: Sometimes getting physical delivery is a bit hectic as suppose someday you got soya oil of something in front of your door. It won’t give you pleaser to you.
Beginner’s Risk: People say that trading in MCX is a work of experts as it required knowledge about the market. So during here for a beginner without much knowledge is a bit risky.
If you want to start trading but have no idea and want to take the help of any advisory so can read about the best advisory of India here Best Stock Advisory Company in India.