Does Anyone Have Any Information on Commodity Investing and or Trading They Can Pass on to Me?
Wednesday, December 24th, 2008 at
12:43 pm
Monk asked:
I would like to become an investor, and am looking for something simple to get into. I have been told that commodities are one of the easiest methods to begin, yet I know no one doing so. Any advice, help, tips, or detours to something a little more simple will do for me as I plan to follow some through the next year and begin investing around the end of next year or the beginning of 2009
I would like to become an investor, and am looking for something simple to get into. I have been told that commodities are one of the easiest methods to begin, yet I know no one doing so. Any advice, help, tips, or detours to something a little more simple will do for me as I plan to follow some through the next year and begin investing around the end of next year or the beginning of 2009
Tagged with: Advice • Commodities • Commodity Trading
Filed under: Commodity Trading
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As a very experienced professional investor, STAY AWAY. I could produce a long list of reasons to stay away as an inexperienced investor but I will give you a few:
1)Insider trading is not only legal, it is expected. There are people who know the true supply of cotton, in fact, there are four groups of them and they trade against retail investors.
2) They are not simple. Stocks are simpler investments.
3) Do you really want to take delivery or be obligated to deliver 30,000 gallons of heating oil? Where will you put it? If not, why do you trade it?
4) In the event of a crisis, can you deliver the required corn of your investment.
5) In the event of a crisis, and the markets are closed by the government and contracts come due, do you have the cash to support them outside this account?
6) Do you understand the supply and demand dynamics of the commodities you are trading?
Commodities are for gamblers and professionals. Individual investors do not belong there.
Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager)