Commodity Price

Commodity Price. There are always three prices while financial markets are open: the bid, the ask and the last price. The bid is the highest current order to buy, and the offer is the lowest current order to sell. To buy you can post a bid, or buy from the offer price. To sell you can post an offer, or sell to the bid price. When a buyer and seller meet the trade is recorded, with the most recent transaction being called the Last price. 

Twenty simple rules of Trading Commodities.
1. Trade like a guerilla warrior. You must learn to adapt quickly to changes. If the winning side is changing, don't hesitate to join the new party and to commit all your forces to this side (capital, mental, emotional)...Until the market conditions change. Don't get married to trades.
2. Be disciplined. Create a game plan then stick to it. A trade does not simply consist of a position. It consists of a position plus reasons for having the position plus a stop loss level plus profit taking levels. In the long run your discipline will save you when markets get rough.
3. Buy high ...Sell higher / Sell Low ...Buy Lower. Do not try to bottom fish or pick tops. When you think you know the trend then follow it.
4. Think big picture but trade like a technical analyst. You must understand the fundamentals behind your investment ideas but you need to understand the Technical Analysis too. When your fundamental and technical signals point to the same direction...you have a good chance to have a winning trade.
5. Do not use excessively tight stop losses. Spend more time identifying a good entry point. Be patient. Give some freedom to the market. Place your stop losses carefully.