Wednesday, April 6, 2011

Q: How much money do I need to start trading commodities?

Q: How much money do I need to start trading commodities?

A: Studies have shown that the more money you have to trade, the better your chances of success. While some vendors (who want to sell you something) suggest you can trade with any amount you may have, most experts agree that with less than $10,000 your success depends on luck. You just don't have enough to diversify and apply proper risk management principles. If you do not have $10,000 in risk capital, you should stay in "learning mode" and paper trade until you do.

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