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Trading Commodties
- Thread starter Daal
- Start date
dont know what kind of commodities you are talking about but the problem with soft commodities is that they dont move much. when is the last time corn or soybeans moved much? so the only way to make money is to use big leverage. leverage cuts both ways. in my experience trading commodities is a losing game.
Many of the softs move huge on a regular basis. Coffee and lumber come to mind.
Trading physical commodities is a highly leveraged game, best suited to position trading (horrific fills in pits). Nothing at all wrong with trading them as a whole though.
When I first started trading ('87), I day traded anything, no matter what the liquidity. Day trading anything via the pits turned into a very expensive education.
You can day trade some of the financials via pit successfully now due to technology improvements, but I would keep most commodities on the position trade list. To me, anything longer than a day is a position trade.
Jay
Trading physical commodities is a highly leveraged game, best suited to position trading (horrific fills in pits). Nothing at all wrong with trading them as a whole though.
When I first started trading ('87), I day traded anything, no matter what the liquidity. Day trading anything via the pits turned into a very expensive education.
You can day trade some of the financials via pit successfully now due to technology improvements, but I would keep most commodities on the position trade list. To me, anything longer than a day is a position trade.
Jay