Lux Investing

Is investing in commodities more or less risky than stocks and should it be a long or short term investment?

I think less but i can't really find a specific answer

Public Comments

  1. It is much more risky due to the huge legerage involved.
  2. Any kind of trading has approximately the same amount of risk. Futures and forex may offer a higher amount of leverage, but this isnt' really higher "risk". you'll see your balance go up and down faster. if it goes down too far then your broker may liquidate your position for you. But you can lose the same amount of money on a single stock trade, so what's the difference? As for long and short term, again there's no difference. I mean if you're used to investing long term in stocks, then perhaps you should try the same thing in commodities.
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