Sunday, June 14, 2009

Futures and commodities Vs Stocks

Futures and commodities Vs Stocks

I got burned in stocks a few years ago, so I'm kind of partial to commodities.
Stocks has over 40,000 companies to chose from and its like finding a needle in a hey stack.
Stocks also trade alot on people emotions a company can be doing great but let some news report come out that a CEO is retiring and people start dumping the stock out of fear.
There's to many factor for a stock to change direction and has nothing to do with their earnings.

Commodities can move some on emotion but mostly it moves on supply and demand.
You don't have as many to chose from ,you can narrow it down to below 40 to watch.
Your leverage is much better with commodities than stocks and your starting investment capital can start out much lower.
You can also trade seasonal trades and make quite a bit of money.
Just a tip-Always use stop loss orders.

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