So many futures categories provide investors with more choices, but each category has different characteristics. For example, the futures prices of industrial products and non-ferrous metals are greatly affected by industrial production; Agricultural products futures are more affected by weather, policies and other factors; Precious metal futures, such as gold and silver, are more influenced by factors such as the international security situation because of their hedging function.
Of course, as a futures investor, I am most concerned about the trend of commodity futures varieties. Trend, in the commodity futures market, refers to the predictable upward or downward direction of commodity futures prices in a certain time series.
Generally speaking, the stronger the trend of commodity futures, the greater the investment value. There is a simple reason. After the trend appears, trading on the right side is more likely to get greater returns.
At present, according to our analysis of the volatility of the commodity index in South China, the fluctuation cycle of the domestic commodity futures market is generally about six months to one year.