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There's a great lesson to be learned from looking at the stock and commodity trading championships.
Almost every year, for over a 1/4 of a century, commodity traders have consistently had greater returns - usually by hundreds of percentage points more - than stock traders.
Why is this?
There are two reasons.
First, stock traders don't have the margin ability of commodity traders. As a commodities trader I can trade about $100,000 of treasury bonds for $3,000, and I don't have to pay interest on the other $97,000. A 10% gain in Bonds almost triples what I put up.
Stock traders would have to pony up about $60,000 for the same $ amount of a stock and pay interest on the balance. A 10% gain on $100,000 of stocks ($10,000) gives them about a 15% return on what they put up.
What a massive advantage for commodity traders!
Of course there's another side to this, a risky one. If you don't manage your money correctly you can lose more than stock traders. That is why I teach the importance of money management.
Second, and I think of equal importance is this:
I think (based on my 50+ years of trading), commodities are much more predictable than stocks.
Why? Because there is a real demand for Crude Oil, Gold, Cattle, Wheat… all commodities.
With stocks there is only an emotional demand; to own in hopes of making money.
No one in the world really needs to own a share of Amazon or Apple or Microsoft. Many people will never own stocks, and their lives goes merrily on. On the other hand, commodities are a necessity of life.
Because there is real consumer demand, actual consumption and production numbers to commodities, I think it is much easier to understand and figure out when commodities will have substantial moves.
That's what I teach in my trading course… the knowledge of what makes for successful trading. Because I have taught my strategy to traders all over the world, I am certain you - too - can join my list of successful traders.
Click Here to ==>> Learn How I Trade Commodities
Don't wait because as always, space is limited for my course. Registration is open right now, but not for long.
Good Luck & Good Trading,
Larry Williams
PS: Jim Cramer on Mad Money recently called me ”The world's best technician”. That may or not be true. For sure though; more of my students have won world championship trading contests than any other educator. What could be better proof? You could be next.
https://www.ireallytrade.com/futurescommodities
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