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
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