(PRWEB) April 05, 2014
In the wake of growing market volatility with respect to iron ore, Nordbell, one of the prominent trading entities, introduces wise investment tips for prospective investors thinking about purchasing iron ore stocks. The investing guidelines have been framed by Vaman Kumar, a trading expert who has compiled enormous data on the market behavior of this mineral.
The expert compiles information on a regular basis to study the stock behavior of iron ore. He says, “Iron ore prices have seen a continuous fall since the past three years. One of the biggest factors that have contributed to the slump of iron ore prices is the glut in China.”
He also points out, “Any alteration in the price of iron ore has an impact on the prices of steel and other allied minerals. The iron ore glut was definitely good news for steel consumers. Those benefiting from this trend include car manufacturers as well as construction companies that utilize steel in large amounts.”
In order to provide users some useful tips on wise investing, Nordbell’s website recently introduced a new section that is solely contributed to investing and trading in iron ore during a time that the markets are bearish. According to what has been listed on the website, it is pretty simple to understand the golden rules of investing in iron ore stock for the time to come:
Invest in high-grade varieties of iron ore because the low-grade ones contain only 48% iron. The low-grade variety has high contains a large amount of silica as well as alumina.
Do not invest too much too fast in iron ore. The stock is too volatile to play bullish. Moreover, do not put all your money in one stock. Act like a chicken will dealing with stocks that are related to iron ore.
Know what kind of stocks to purchase. Do a thorough analysis of the stock that you are putting your money in. It is wise to invest in ‘low-risk’ stocks even if they promise a low return, in case you still wish to invest in iron ore. After all, small losses are far better than big losses.
Don’t be an emotional fool. Even if you are investing in the stock of some company that has always given you a great return, do not go by the emotion of sticking to the stock if you know that the future does not hold a great return potential.
Exercise your options. Don’t be vulnerable to the falling market. As soon as you can cash in the iron ore stock, whether at a minimal profit or at a loss, it is wise to do so. Do not keep waiting because it will only mean more loss.
Further adding to the market behavior of iron ore stocks, Nordbell expert Vaman Kumar says, “Although most iron ore traders thought that is a reversal, actually the prices are in a retracement period from its high. It is a normal behavior of the market, mostly because a lot of factors changed.”He further adds to his analysis that: “Even though the future evolution of the iron ore price may seem instable, iron ore is now the largest commodity market after oil as was mentioned in the analysis made by the Natural Resources Canada.”
About Vaman Kumar
Vaman Kumar is an industry expert in the field of international trade and global commodity trade especially in the field of iron ore trading. He has been associated with Nordbell Commercial Limited and his interests include Metals, Minerals and Energy in Commodity Trading, International trade, Banking, Finance and Credit and Risk Management.