1. CHOOSE THE RIGHT COMMODITY

In commodity exchange there are 1000s of commodities are available for trading, but your success is based on selecting the right commodity. Example, you can choose Crude Oil , which is the best commodity to trade.  Crude Oil gives you lot of opportunity to create wealth. Its having good volatility and liquidity.

2. Identify the  right exchange to trade

In India we have two important Commodity Exchange. MCX (Multy Commodity Exchange) and NCDEX (National Commodity and Derivative Exchange).  So you have to choose the right exchange based on liquidity and volatility of the commodity. Let us say we are trading in Crude Oil, MCX is the best exchange which is in parallel to International  Commodity Exchange in Price Movement and Liquidity.

3. UNDERSTAND THE COMMODITY WELL

This step is very important, where you are going to master the fundamentals of the commodity which you are going to trade.  As you know that commodity will be influenced by lot of news nationally and internationally, so you must understand which are the news going to affect your commodity. This is called Fundamental Analysis in Commodity Market.

4. UNDERSTAND THE MASS PSYCHOLOGY OF THE MARKET

Market movement is based on Mass Psychology of the Market. You can create massive wealth by understanding the mass psychology of the market. You can master this by learning the Technical Charts. This is a decision making tool. So Master the Technical analysis.

5. CREATE A SYSTEM TO TRADE

This is called stress free trading. System building is very important in commodity trading. A good trading system will have entry, exit and Money management rules. It will take out the emotions in trading. So you can enjoy every moment of commodity trading and create massive wealth.

6. PLAN YOUR TRADE

Planning is very important. You must do all your planning before market opens. Execute your plan in the market and never deviate from your plan. To be successful in trading you must plan your trade and stick on your trading plan.

7. KEEP A TRADING DIARY

Trading diary is one of the most important tool. You must keep a record of your trading.The trading diary will contain at what price you entered the trade and how you exit and what was your risk management. So this will help you to review your trade and definitely you can improve your trading skills.