How to Invest Today

There are numerous markets to trade, the most familiar involving the buying and selling of stocks and bonds. For many traders, however, a more fast-moving, more volatile market is preferred. Such is the nature of the market where commodities futures trading takes place.

In my opinion the best high yield investment is futures, there’s no doubt in my mind. But trading futures on your own with very little experience or without a long term strategy or a strategy that hasn’t been tested is like running onto a battle field with a rifle and thinking “hey I have a rifle, I should be ok as long as I don’t get shot at”. This analogy sounds stupid but its what so many new traders do on a routine basis, and it’s a routine bound for inevitable disaster. Futures have long held the stigma as one of the highest risk investments available, and understandably so with almost 95% of new traders entering the market losing most of their investment within 6 months of the day they started. But let me ask you this, if investing in futures were a guaranteed loser then why would there be any investors at all? The obvious answer is because that other 5% makes money and a lot of it! So the next thing you’re probably thinking is aren’t those 5% making money at the expense of the other 95%? In partial this is true. But mostly it has nothing to do with those other 95%, they just add more buyers and sellers to the market thus creating more liquidity and being able to get out of the market, this is similar to selling a house with numerous offers on it and having a market filled with buyers and sellers at the same time. The bulk of the futures market movement consists of hedgers and fundamental events that drive the majority of investors or hedgers to buy or sell, it’s not so much about what newbie speculators do.