There are several ways to trade commodities. You can do this by physically purchasing a commodity, but this is not always possible because it may require a lot of space to store it. Imagine you have to buy 1,000 barrels of crude oil. You can do this through futures contracts, but you need to have a proper account that will make you have a profit/loss of even several thousand dollars. You can invest in the shares of commodity-related companies. However, a company's share price can fluctuate considerably due to external factors that have nothing to do with commodities, making your investment worthless. You can use options and this is a viable alternative to the best way to trade commodities: spread trading. Spread trading is the best way to trade commodities. Not only seasonality, but spread trading also has many other positive aspects such as reducing volatility, minimising the manipulation that occurs in futures contracts, and in certain types of spread also eliminating directionality. If you are attracted to commodities, know that trading them requires a lot of work. There are many aspects to be taken into account and analyses to be made. But if you are determined to go down this path, then, I advise you to keep following me. In the coming months, my videos will explain what you need to know about commodities and spread trading, and will give you a correct and complete understanding of this market.
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My name is David Carli, a financial analyst with 28+ years of experience (two years as a fund manager) in currencies & commodities. After 28 years of experience in this field, two years of being a fund manager, and publishing numerous books, I am fully equipped to help you transform your financial life. My studies at the University of Pisa and my passion for this work prepared me to live my life as a full-time financial analyst and educator. Trading with David was born because I love teaching people how to break the chains of limited knowledge and create the financial life they want to see. I developed my website for the sole purpose of sharing my knowledge to help you and others avoid the mistakes that I suffered when first taking responsibility for my finances. Every month I help hundreds of individuals in my inbox by asking a wide range of financial questions. I have made it my personal mission to assist others by teaching them how to improve their money management. I love connecting with people and helping them accomplish their financial goals. I help because I want to and because I believe everyone has the right to control their money and investments, including you. I know it is possible because I have done it myself, and I know you can do it too.
