Why is commodity trading easier than Stocks

K

Kaboooooom

Member
#1
#1
Hi,
I am new to commodity trading and according to the poll I see that commodity trading is considered easier than Indexes and Stocks. I appreciate all the information in the "How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas" post but I don't think I'll be able to read 900+ replies in there. I want to ask why is commodity trading considered easier? Is there less volatility in it or what is it. I do not need the trading details, I just need the fundamental crux about why is it easier.

Thanks in advance.
 
G

gd.shepherd

Member
#2
#2
I traded CFD's of Brent crude. Commodities are more volatile than Stock and indices. Volatility is seasonal, macro-economy based and other news can also affect it. May be the returns are larger, the risk is larger too. I lost 900 GBP in one day on Oil. Of course it was leveraged.

Gold, Silver are volatile. Gold will fluctuate based on news about economy or when US Fed's FOMC minutes are out.
 
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