Monday, May 2, 2011

Commodities best streak since 1997

Commodities have had their best streak since 1997 vs financial assets.

Markets zig and zag, they do not zig and zig.  Its best to buy low and/or sell high. If you miss buying low, you can always short them high. When one sided markets begin to break... it usually ain't over in a day.

6 comments:

Anonymous said...

Did you manage to sell your silver? I am interested in that because I am long physical silver but I will want out at some point.

Best,
Dan

Greg T. Jeffers said...

I sold short in the futures market... I will probably keep the physical... short futures long physical is the same as selling physical.

I was just selling a some physical to trade for some farm equipment I wanted.

Anonymous said...

Total beginner here...I understand how shorting works, but WHERE can I do this? Can I just get onto scottrade, setup an account, and start shorting? Seems like they only let you take long positions. Can it all be done online? I'd prefer not having to go into a brokerage firm. Sorry if it sounds like a stupid question, but I can't find any info about it on the internet.

Greg T. Jeffers said...

No.

SLV is almost impossible to short now. You will have to open a futures account.

Just google "discount commodity futures brokers".

I must warn you that commodities are a very, very dangerous thing for a beginner... if you are not a sophisticated investor/trader with rock hard discipline I would not do it if I were you.

Anonymous said...

Beginner,

I started trading about 7 years ago. Opened a small account ( $10k ). For the first 4 years, the market handed me my a$$ regularly. The next two I stayed flat to small gain. This year, finally, I'm up a good bit. It is regular and repeatable. I gave up financial analysis for statistical analysis about 5 years ago, regressed my analysis over a field of 1500 stocks over the last 10 years. I keep nipping away at the thing. I'm starting to know what I'm doing. If things go well for another year, I'll add money to my account.

BE CAREFUL. Start small. Study and work at it. The markets are ingenious at separating you from your money.

Regards,

Coal Guy

dennis said...

This year I'm going to lentils. I should see a return in about four months. Hopefully the cows will enjoy the stalks. Gardening is enough of a gamble for me.