Traders globally engage in the trading of various commodities, and the Multi Commodity Exchange of India (MCX) plays a significant role in facilitating the trade of raw commodities such as MCX crude oil, MCX copper, MCX gold, MCX silver, MCX zinc, and more.
Traders involved in short-term trading typically fall into the categories of swing traders or day traders. If you’re considering intraday trading in the commodity market, it’s essential to have a reliable trading strategy that consistently yields positive results. However, even with a sound strategy, there are crucial aspects to understand about intraday trading in the MCX commodity market.
Intraday trading, often referred to as day trading, involves executing trades within a single day. It’s important to emphasize that day trading does not obligate you to trade daily; rather, it signifies trading within a single day. Essentially, you enter a trade, initiate a position, and aim to exit the position within the same day, hopefully securing a profit. Engaging in intraday trading within the commodity markets demands a high level of discipline, a thorough understanding of the market, and a well-defined strategy.
If you’re considering trading commodities or options on futures to supplement your income, it’s a wise idea. Commodities futures can only move in two directions: up or down. All that’s required is a correct prediction of the market direction and aligning your trade accordingly to potentially profit from the market movement.