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What Does a Commodity Broker Do? Gary Fullett Explains

What Does a Commodity Broker Do? Gary Fullett Explained

ORLAND PARK, IL, UNITED STATES, October 5, 2020 / -- A commodity broker can be a firm or an individual. Either way, a commodity broker is an entity that handles commodity trades for clients. “Whether you’re trading online or on the phone, you’re dealing with a commodity broker,” says Gary Fullett, commodity broker and owner of LTG Trading, LLC. “Our job is to make the trade go as efficiently and smoothly as possible.”

There are several types of brokers and many of them operate on different methodologies or trading philosophies. Gary Fullett utilizes the Wyckoff principle and tape reading - a niche market skill that gives him, and his students, a real-time advantage in the market.

Gary Fullett Explains What a Commodity Broker Does

“Commodities are goods that are bought, sold, and traded all over the world,” explains Gary Fullett. But in addition to direct trading (buying, selling, etc.), commodities can be invested in through options, futures, and other financial derivatives. Commodity brokers connect commodities to investors and help guide their financial investments.

Fullett uses Wyckoff principles to advise and guide his investors. This method uses a combination of tape reading, bar charts, and point-and-figure charts to accurately read the market and make sound investing decisions.

Gary gives us an extremely simplified rundown of the Wyckoff method. First, you determine the present position and probable future trends through charting and tape reading (if you have that skill). Then you select stocks that are in harmony with those trends. Next, you use point-and-figure charts to select stocks with a cause that equal or exceed the minimum objective. Then you determine the readiness of the stocks to move. Lastly, you time your commitment with a turn in the market index and put your stop-loss in place.

How Do Commodity Brokers Work? Gary Fullett Explains

“Unless you own a seat on an exchange or trade in the commodity pits, you can’t really trade commodities on your own,” says Gary Fullett. Most people have to go through a broker to successfully complete a trade.

Brokers may have actual traders on the floor to assist you with the execution of your trade, or they may offer access to a trading platform so you can place and execute trades electronically. The exchanges need brokers to bring in investors - and they all have their own rules about how their commodity brokers should conduct business. The reason that most exchanges will not deal with individual investors is simple math - it’s a whole lot less difficult to deal with a few dozen brokers that allow hundreds of thousands of people to place individual trades.

There are many methodologies and philosophies of commodity trading. Gary Fullett is a long term practitioner of the Wyckoff method - a five-step method of market analysis. In fact, the Wyckoff method was so influential and successful for his business, that he became an evangelist and online educator and has been teaching the Wyckoff method since 1995. If you’re interested in learning more about how to trade in commodities successfully, Gary Fullett offers free webinars on Wyckoff live trading to help you get started.

Gary Fullett has been in the commodity brokerage business for over 39 years and is the owner of LTG Trading LLC, a reputable and successful commodity brokerage. He studied the Wyckoff principles and has become an educator for commodity brokers all over the country. You can find his extensive library of content on the LTG Trading site.

Caroline Hunter
Web Presence, LLC
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