I agree very much with limiting position sizes, especially with riskier investments like commodities and with shorter term investments / trades. I generally limit individual investments made on fundamentals and assumed to be longterm to 5% (most are less), and the occasional short term trades are limited to 2%.
Because commodities are tangible assets that we use in our everyday lives. They are things that have been traded throughout history and will continue to be so. They are the purest form of trading known and will always outlive stocks, share, currency etc etc.
I see commodities as long term investments and they are part of my investment finacial.short term trading on commodities makes it difficult to trade in them is risky nature.
we use in our everyday live are tangible assets of commodities.they are known to trading and will always outlive stocks, share, currency etc etc.
Trading with high levels of exposure is almost guaranteed to end in tears, especially for a novice trader.
I have been 6 month, doing GOLD trading Now I am focus in Gold, because I like its volatility, every price movement is my benefit I always close my monthly trading with profit 5 to 9 %, and never lose my monthly trading
Trading commodities is a specific niche. Some traders prefer equities, some indexes or forex or commodities. Often trading systems work better in one type of market than the other and each market has its own drivers and characteristics. Personally I trade equities and financial futures. I don't trade forex, but I would like to trade commodities. I just don't have enough skill and understanding of commodity markets yet.
I think trading commodities has a lesser inherent risk. At least we are always hearing that gold is the safest investment to make...
Aside from the usual gold, oil, gas, and silver, I've been dabbling a little in palladium, platinum, copper, and certain agricultural items lately.
Before the days when FX was open to the public, my preferred market was the Futures market. This was because I was taught how to technically trade commodities at that time. People who do not technically trade, and use the proper indicators to tell when breakouts are about to take place are subject to the ups and downs of the market in a much more volatile fashion. If anyone is trading any asset in any market without using charts and indicators backed by a solid strategy is asking for it... Trade with your head, and not your heart!
