Commodity trading is based on commodities. These might be precious metals or grains. These are hard times and a lot of money is gravitating in the direction of commodity market. This makes the market a sizeable one. Investors are best advised to follow a practical approach towards trading. First, they should keep away from trading in all kinds of commodities. Keeping a portfolio of two commodities, a crop and a precious metal is largely considerable. Beginners shall also learn to observe news and momentum trading resulting from it. A lot many times, a sharp movement in stock results from certain news; for instance, inflation, GDP, or strong under-market information pertaining to a particular commodity. These shall be taken advantage of. The way to do it is to rise early and find about the latest developments in the world market. Sometimes, a late night development can also be tapped another day.