Unless you have been trading and scalping futures for a long time, get out of the futures markets while you have a chance. When futures spike, the decline can be quick and devastating for those on the wrong side of the trade.
The commercials can be short futures because they're hedging actual commodities or currencies. The hedges never are perfect, but they're basically protected. Speculators may feel protected by being in complex spreads, but spreads can go wrong real fast. Ask Bear Sterns.
The ETFs and mutual funds in futures had better have good lawyers, because if they don't play these markets successfully, their defense attorneys will, win or lose.
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Unless you have been trading and scalping futures for a long time, get out of the futures markets while you have a chance. When futures spike, the decline can be quick and devastating for those on the wrong side of the trade.
Mar 30 11:17 am
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All Comments by Donald Johnson »Get Out of Commodities - Barron's [View article]
The commercials can be short futures because they're hedging actual commodities or currencies. The hedges never are perfect, but they're basically protected. Speculators may feel protected by being in complex spreads, but spreads can go wrong real fast. Ask Bear Sterns.
The ETFs and mutual funds in futures had better have good lawyers, because if they don't play these markets successfully, their defense attorneys will, win or lose.