Falcon Commodities - Private Limited

The exchangeable value of all commodities, rises as the difficulties of their production increase.

Controlling Trading Risk :

You should know what your risk is on every trade before it is entered. Once you are filled on an order you should immediately place your stop loss order to limit your risk on every trade. One of the biggest mistakes new commodity traders make is failure to take a loss. Often, one or two big losses will destroy an account. If you can keep your losses small, you will be far ahead of most new traders.

Starting Account Size :

There are a couple schools of thought here. Many believe you need to start a commodity trading account with at least Rs.300,000 to give yourself a fighting chance. There is a lot of truth to this, as many traders who start with less than Rs.50,000 get wiped-out fairly quickly. I don’t necessarily believe it is the size of account that is the cause for losing; rather it is the way in which small traders trade. You can open an account for Rupees 50,000 and trade one contract of a fairly stable commodity and do just fine.

Crude Oil Maintains Breakout:

Crude oil futures have been holding steady above the breakout from a couple weeks ago out of a major trading range. Crude oil had been stuck in a range between 85 and 90 for a couple months, but now the market is exploring higher prices.

This technical breakout is looking more legitimate by the day. When a market breaks out and holds those levels for a prolonged period, it is likely the market will continue to move in that direction. The market could test the $100 level on this run.

The main fundamental reason for the move has to do with a more upbeat outlook on the economy. The Fiscal Cliff issue has been averted and some of the economic numbers are looking better. We also have to consider that China looks like they are back on track and Japan is flooding their economy with easy money.

Pakistan Mercantile Exchange - PMEX Pakistan Mercantile Exchange is Pakistan's first and the only multi-commodity futures exchange.