Wednesday, May 8

Realistic Returns in Commodity Trading

I was having a talk with one of my friend who recently started trading commodities, He trades in Gold and Crude. As all new traders he had very high expectation, he was telling me that few of his friends made very good money trading commodities and  he was really excited in trading commodities, I asked him what kind of return are you expecting out of his trading and he said 50-100% per month. I was taken back on hearing this answer and gave him some basic idea of how to approach trading with realistic expectation.Sharing part of conversation with readers.
One of the biggest mistakes new commodity traders make is having unrealistic expectations before they even place their first trade. The commodity markets are highly leveraged investments, which increases profits for disciplined traders and rapidly drains the accounts of reckless traders.
Commodities are highly leveraged instruments and  can have 20 to 1 leverage,  so you just need to have a 5% margin and you are ready to take positions, For example, gold futures

Continue Reading

0 Comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to Post Comments [Atom]

<< Home