If you choose to trade in commodity futures then you have to ensure that your information is updated and accurate at all times. While it is possible for an individual to have enough knowledge to engage in trading activities and cut advisors from their dealings, it is always better to have the advice of someone who makes their living analyzing the commodity markets.
Most brokerage firms provide in-depth analysis on the commodities that you are trading in, as well as the stock market conditions. These are usually provided by the advisors who are part of the brokerage firm, as well as information from sources like financial news services and magazines like Stocks and Commodities which provide information on the market conditions to subscribers. It is best to listen to the most reliable sources of information and analysis, and then make informed decisions regarding the trading of commodities.
Most firms also have a CTA, or commodity trading advisor, who will give advice on the value or the wisdom of buying or selling commodities at certain times. CTAs always trade with other people’s money and thus have a responsibility to the clients of the brokerage firm.
Analysis that is provided by the firms, and financial news networks regarding the market conditions, is always synthesized from different sources of data – the stock exchanges, weather, and political situation, as well as prices for highly valued commodities like oil.
Once the analysis has come through, the advisors will usually advise the client to buy or sell depending on the market climate. It is important to always go through the market analysis very carefully before taking risks.