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Saturday, 04 May 2013 06:35

managed futures vs. going it on your own

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commodities are getting famous every day and there is nothing wrong about this information. initially commodities were not considered very attractive in the investment world but now they are making their place in the portfolios of serious investors. according to some careful analysis, many large scale endowment and pension funds, and rich investors are adding a rising section of commodities to their on the whole investment strategies. it has been observed in the past few years that amount of money in managed futures has almost got doubled due to their connection to the stock market.

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the fast increase in the cost of commodities over last few years has also been noticed by small investors. speculator money ran into the jewels like gold and silver and also in crude oil. this all happened at a very fast pace in the start of 2011. unluckily, a lot of “green investors” were ruined a lot when this happened in may of current year. a simple point to raise here is: if they had deferred their money to commodity traders in a managed futures account, this worst situation could be averted. new traders believe that they can get on the road to richness by just taking a few weekend seminars or going through latest books on this subject. this has been observed a lot of times and this is of course not correct. last month we came across a potential client who was convinced that he was about to day trade lacks of dollars and net 10% every month. all the best to him!

investors should know this well that to trade commodities with full professionalism, you have to spend years in this profession. it is just like becoming an engineer, doctor or lawyer after years of studies. no student can just read a medical book in one day to become a professional doctor. of course this is mad even to think! one of my respectful teachers told me that i can’t be constantly successful at trading without spending several years in this field, and i found their statement amazingly correct. don’t do the mistake of buying all the courses and seminars that are sold by so called traders everywhere.  they are just making their money by fooling you because they remained unable to earn from stocks. successful guys do not sell seminars and courses; they love professionalism and trade the money in the same way. there are of course exceptions in this, but mostly it is true.

if you are really looking for making some realistic and cool returns in commodities, you should go well planned and well researched. you can research commodity trading advisors that have impressive track record. talking to your commodity broker is also a good idea! brokers are experienced guys and they can refer various advisors that are well reputed and trustworthy. remember, a well reputed commodity advisor can keep you from lots of problems and save you a reasonable amount of money.

Read 1199 times Last modified on Thursday, 01 August 2013 11:07

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Contributing Editors

  • adrian muller has conducted seminars for the chicago board of trade, including a key series in 1999 which cautioned about a top in the equity markets (see his article “top experts and statistics on the dow”). adrian muller has appeared on cable tv financial programs with analysis on the futures markets and equity market directional forecasts. he has been quoted in barron's, the wall street journal, and futures magazine.

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