5 reasons why commodity futures are better than stocks

Here is my list of reasons why I prefer to trade commodity futures and options rather than stocks.

1. Commodity prices still have some connection with fundamentals, including supply and demand.
2. Commodity prices will never go to ZERO, companies can go out of business and their stock price will drop to zero.
3. One analyst, with his/her opinion piece, cannot influence commodity prices as easily as he/she can with stocks.
4. It is much easier to become knowledgeable and follow handful of commodities, than it is to select handful of stocks that make sense to follow.
5. lastly, you get much more bang for your buck, the margins requirements for commodities are much lower than they are for stocks – hence your money works harder for you.

2 Comments

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  By mcdonalds, September 14, 2009 @ 10:10 am

  Thanks much for that awesome blog post.

Other Links to this Post

1. 5 Reasons Why Commodity Futures are Not Better than Stocks | TradeOrInvest.com — December 19, 2008 @ 3:22 am

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