Brand Voice: For most of the investors, stocks are the only option known when it comes to short term investment options. Pakistani investors mostly like to play safe and avoid risk by investing in bonds and certificates which yields lower returns. For those, who like to play big, they opt for stocks, where even though the market may be volatile, the returns are high! Commodity exchange is one of the market that provides crazy returns and still not on the top list of options. Major reason is the audience being not aware of the immeasurable benefits they have while trading in commodities.
We have jotted down some of strongest rationales one must forget the world of stock exchange and enter the world of commodity trading!
- HIGH RETURNS
The primary motive for investment is to gain more money. And who wouldn’t want extra return on the same amount of money invested? A normal return in the stock market is about 10% – 20% while that in commodities goes to 100% or more. The leverage in the futures market is enormous and so is the return you get while trading in commodities or futures.
- COMMODITIES CAN NEVER BE ZERO
According to the famous investor, Jim Rogers, “The price of a commodity will never go to zero. When you invest in commodities futures, you’re not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.”
What will happen if the company you investedin, goes in bankruptcy? Yes the chances are always there. The stocks will go bust and you are remained with only losses. However with commodity trading the risk is zero in that end.
- PUTTING EGGS IN DIFFERENT BASKET
The first and foremost rule of trading is to diversify your portfolio. The dilemma of stock exchange is that even you still out money in different stocks, but the risk remains the same. The stock market moves together and so is all the stock. If the market is going down, all the stocks will go down together.
On the other hand, commodities are fairly independent. Though these are affected by the economy and current issues, but the effect is very low. Plus different economic conditions affect different commodities at different rates and not all at once. So you are always in a better position with commodities in trade.
- FUNDAMENTAL ANALYSIS
Trading in stocks has never been easy going. There is lot to be considered including the dividends, the YOY growth, the corporate earnings, the board members, the recent developments and much more. When it comes to commodity trading, the decision making is merely on the demand and supply and economic conditions of the top countries supplying the commodity. Thus analysis and decisions turn much easier for traders.
- LESS OPTIONS TO EVALUATE
In stock market, you have numerous stocks available to trade. It is humanly impossible to learn about each of them. While in commodity exchange, the trader has less options with more returns on them. Though in commodities, trader has maximum of 20 options to evaluate, stock markets confuses with 100 different stocks.
Stock markets are experiencing wild swings so stock traders, try a different approach now and learn about other investment opportunities in commodity trading.
If you think you are ready to diverse your portfolio, enter the world of commodity trading today! You can start with one of the most reputed brokers in the industry like ACM Gold (Pvt.) Ltd, who is providing a powerful, user-friendly trading platform, MetaTrader 5; that only a few brokers in the industry are currently offering. MetaTrader 5 offers mobile app too, which brings trading at your fingertips! MT5 trading software makes it highly convenient for traders to trade in commodities anytime as they can always keep a watch on the market and enter or exit the market as they find suitable. Newbies need not to worry, trading on the MT5 platform is easy and brokers are always available to provide free training sessions to their client. So wait no more and enter the world of trading.