Can you make money trading commodities?

Can you make money trading commodities?

Over the long term, such a trader has may take money from hundreds of less experienced commodity investors. Successful amateur traders and professional traders usually trade larger amounts of money. … You can make money from trading commodities whether you are a novice or very experienced investor.

Are commodities a good investment?

Advantages of commodity investing Over time, commodities and commodity stocks tend to provide returns that differ from other stocks and bonds. A portfolio with assets that don't move in lockstep can help you better manage market volatility. However, diversification does not ensure a profit or guarantee against loss.

How much can I earn in commodity market?

And yes, it's possible to generate income of Rs. 500-1000 per day on capital of Rs. 5000 from Commodity trading.

Why commodities are a bad investment?

Many investors use commodities as a hedge to reduce portfolio risk since they have a low correlation with other asset classes. The problem is that many commodity indexes are heavily weighted in a handful of commodities, such as crude oil. Many crises where they tend to outperform on a speculative basis are short-lived.