If you do not mind losing $ 5,000 in 10 minutes, you can enjoy the commodity futures trading. There's an old saying among commodity traders: "It 'just a small fortune in commodities make it easy to start with a large fortune." This is not a business for people who are emotionally, are connected to their money, but thousands of average "investors" in commodities markets for years to get baits years. Why? Because of the possibility of high percentage gains with the built-in leverthat both the Commodity Futures Traders.
The commodity markets are wheat, corn, soybeans, pork bellies, gold, silver, oil, wood and many other items of common commercial policy. Large companies operating in these markets use commodity "futures" contracts to lock the selling prices of products before delivery. This approach is called "hedging". On the other side of the transaction, the merchant speculates that if the goods are pricedup or down before the contract for delivery. Since contracts can be purchased with leverage, these financial instruments lend themselves to speculation.
Commodity
For example, the control of a contract of corn, valued at $ 5000 only $ 500 of real money requrie or 10% of the nominal value of the contract. If the grain goes in value, and the contract has a value, say, $ 5,500, the speculator has made $ 500 on his back the original $ 500 for a 100%. Comparison with the stock regularMarket, leverage limits of 50%, so that requires $ 5000 shares worth at least $ 2,500 in capital. If the stock rises to $ 5,500 in value, is to win the $ 500 against $ 2,500 invested, for a return of "only" 20%. The return is 100% sure a lot better, right?
One can easily see why investors are looking for quick profits hypnotized by the lure of big profits with the highest trading commodity futures. The real problem is that leverage works bothDIRECTIONS. It is possible the entire investment in a few minutes through the turns wild price that sometimes occur in these volatile markets to lose. Suppose that the contract is $ 5,000 to $ 4,000 in value instead of increasing. They have not only the original $ 500 you have lost the contract in place, but an additional $ 500. You can quickly go broke in this way.
So why do people play this game? Investors do not mean to wake up and say, "Okay, I think I start tradingRaw materials. "What happens is they get a sales pitch from a commodity trading" gurus "who claim a" system "to create an infallible wild profits in this market. These" systems "in price from $ 25 to $ 5,000 or more and are based on the promise of "huge profits" from selling a small initial investment.
Writers newsletter or commodity gurus regularly pitch the myth of turning $ 5,000 into a million dollars in less than a year. The typical commodity systemBad luck comes in a long sales letter or brochure that describes a method for the extraction of "9 out of 10" or similar trades inflated.
Of course, if it were possible to trade successfully for 90% of the time, a person could easily raise millions of dollars in a very short period of time. Because these people are so anxious for you to spend $ 195 on their super-duper trading course? Because you probably do not make money with their trading program! And 'much safer to make moneySales of other, on the concept of the Commodity Futures Trading.
There is no sure way to make money consistently in these markets, simply because the underlying commodity prices can fluctuate wildly back and forth depending on a complex set of variables, many of which are completely unpredictable. Therefore, only the money people are constantly in the commodity markets, the broker to collect a commission, regardless of the execution of the operation if they have won or lost. Sinceare also a handful of successful professionals who live in these markets. But the vast majority of people who dabble in commodity futures lose money.
Unfortunately, with the lure of big returns and easy money, enter into a fresh culture of innocent traders market each year, only to be fleeced of their money in a hurry. Do not be one of them! Let the professionals at Commodity Futures Trading and keep up with the tedious forms of investment such as mutual fundsor stocks and bonds.
Commodity Futures Trading - why it was not for the average investor
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