Commodities For Dummies by Amine Bouchentouf
Part 1
Commodities: Just the Facts
Chapter 1
Investors, Start Your Engines!
An Overview of Commodities
IN THIS CHAPTER
Finding out why you should invest in commodities
Defining the commodities markets
Determining the best ways to trade commodities
Identifying the major commodities
The commodities markets are broad and deep, presenting both
challenges and opportunities. Investors are often overwhelmed simply
by the number of commodities out there: more than 30 tradable
commodities to choose from. (I cover almost all of them — 32, to be
exact — more than any other introductory book on the topic.) How do
you decide whether to trade crude oil or gold, sugar or palladium, natural
gas or frozen concentrated orange juice, soybeans or aluminum? What
about corn, feeder cattle, and silver? Should you trade these
commodities as well? And, if you do, what’s the best way to invest in
them? Should you go through the futures markets, go through the equity
markets, or buy the physical stuff (such as silver coins or gold bullion)?
And do all commodities move in tandem, or do they perform
independently of each other?
With so many variables to keep track of and options to choose from, just
getting started in commodities can be daunting. But have no fear — this
book provides you with the actionable information, knowledge, insight,
and analysis to help you grab the commodities market by the horns.
Maybe you’ve heard a lot of myths and fantasies about commodities. I
shatter some of these myths and, in the process, clear the way to help
you identify the real money-making opportunities.