Gold and silver are two of the most popular commodities today, and are openly traded on the commodity exchange. India has limited options for trade in precious metals, with the MCX considered as the best avenue for interested individuals.
What is MCX?
The MCX or Multi Commodity Exchange of India is a commodity exchange which is based in Mumbai and operates out of India. It offers trading options in a number of commodities, including gold, silver, cotton, palm oil, etc. and is regarded as one of the largest exchanges in the world. It has an 84% share of the market in India and is ranked the best commodity exchange in the country. Gold is the highest traded item in MCX, with it opening the doors to fortune for thousands in the nation.
MCX Trading tips for beginners
Entering the world of commodity trading can be daunting, especially to the uninitialized, making them prone to errors. Here are a few gold trading tips which could help you survive in this competitive world.
- Stay patient – It is possible for us to be jumpy or overconfident while investing but acting hastily could lead to your downfall. It is imperative that one exhibits patience while participating in the MCX.
- Invest in multiple commodities – Keeping all your eggs in one basket will do you more harm than good and diversification is crucial.
- Don’t believe what you hear – It is easy to get carried away by things you hear. Experiencing it first hand is important and blindly following the crowd could lead to your downfall.
- Don’t hesitate to ask help – There are a number of analysts and advisors whose main job is to help people who are lost in trade. Approaching a good analyst for help is the right way to go in certain situations.
- Stock market is not the same as commodity market – It is easy for us to confuse ourselves between the stock and commodity markets, but one should know that both of these are separate entities and different strategies should be used.
- Evolve – It is imperative that an investor continuously stays abreast of current happenings and evolves over time when it comes to investment ideas and strategies.
- Invest slowly – One can get carried away by the prospect of fast money, but it is ideal to begin slow and invest progressively, as the understanding of how the market functions increases.
- Understand the risks involved – There are considerable risks involved while investing and one should always remember these risks.
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