From Stocks to Commodities: Navigating Trading Products
Trading means buying and selling assets like stocks or commodities to try and make money on changing prices. Stocks let traders own part of a company. Stocks go up or down based on how the company is doing and how investors feel about it. Commodities are basic goods that are produced and sold, like oil, metals, grains, or coffee beans. Commodities work a bit differently than stocks: Commodities are physical things that get used up. Stocks just represent ownership in a business. This gives commodities value for real-world use. Many commodities have limited supply based on what gets produced. Companies can keep issuing more stocks. Limited availability makes commodities potentially scarce. Commodity prices change more quickly than stock prices since supply and demand can shift a lot. Bad weather, transport issues, or problems at a mine can all rapidly affect prices. Commodities maintain their value better over time compared to money or financial assets. This makes them a good hedge again
