Wednesday, April 6, 2011

Q: Are options a good way for a low-capitalized investor to try commodity trading?

Q: Are options a good way for a low-capitalized investor to try commodity trading?

A: Absolutely not. Buying puts and calls is a sucker play very similar to casino gambling. You can win in the short term, but the more you buy puts and calls, the more you will eventually lose. When you buy a put or call, only a professional trader or a floor trader will be selling it to you.
They do not sell unless the odds are in their favor.

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