Is commodity risky?

stephenn

Newbie
4 0
Whenever i talk about with peoples about commodity they all reply me, oh commodity! it is very risky. So i want to ask that is it really risky? if it is, Then how? please share your opinions.
 

new_trader

Legendary member
6,541 1,419
Whenever i talk about with peoples about commodity they all reply me, oh commodity! it is very risky. So i want to ask that is it really risky? if it is, Then how? please share your opinions.

No more or less risky than any other investment. Actually, I'd say commodities are less risky. For example, a gold mining company's share value can go to zero whereas physical gold coins can never go to zero.
 

Rhody Trader

Senior member
2,620 265
Risk in trading tends to come more from how one trades rather than what one trades. That said, commodity markets do tend to have higher volatility then others, about in line with some individual stocks
 
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social_trader

Newbie
4 0
Right now it's probably the least risky since commodities were booming back in 2007. Although many Wall Street banks have decided to drop them. But that's mainly due to regulation. They offer good returns, but only when trading a large quantity. Hope this helps.
 

dailyearning

Newbie
6 0
Commodity is risky only for those peoples who want to become rich over night. Such peoples always invest money in commodities without any advice & loss all of money. But apart from this, if you will trade wisely in commodities then you have maximum chances to earn more money. Richard Dennis has made $200 Million just from commodity, you can also earn such a huge money if you will invest wisely.

Thanks
Rakesh
 
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Patricia12

Active member
247 4
Why commodities are considered risky? Answer here commodities are traded in futures contracts and they are highly leveraged.
 

cfdman

Newbie
0 0
Trading is always risky. If not, you are not really "trading". Example; If you expect a performance of 10% you must expect a drawdown of 8 - 10%. Thats trading! At the moment I'm trading with the turtle trading strategy. My performance YTD is 6.5%. It's not bad! My broker is Weidmann Markets. (y)
 
 
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