By: Ryan Reyes
Date: April 8, 2010 @ 8:01 A.M
Categories: Commodities
Tags: Risk, Amateur traders, Investment
For those who yearn for the fastest, toughest, highest-risk financial game of all, there are commodities. As many as 90% of all amateur traders lose money and drop out within a
year, and the only consistent winners are the brokers who charge you commisions.
Still, if you crave excitement and have a cast-iron stomach, commodities trading can offer impressive gains for that tiny portion of your investable funds that you are willing to put
completely at risk-your mad money. But unless you are an expert, never put more than a nickel or dime out of every investment dollar into commodities.
Small investors who speculate in commodities make two major mistakes. Many of them operate on the basis of tips; they are often wrong, and the amateurs cannot hope to match the professional traders for access to update, accurate information about markets. Small investors also tend to be undercapitalized.
To stay in this game, you should have a dollars in reserve, ready to commit, for every dollar you put up.
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