Realistic Expected Returns from a Commodities Broker

Investing with a commodities broker has become a popular alternative to investing in the stock market. Many investors have heard of the amazing returns that you can get from investing in commodities. Here are a few things to consider about what you should realistically expect in the way of return when investing with a commodities broker.

Unrealistic Expectations

One of the biggest problems with investing in the commodities market is that investors have an unrealistic viewpoint of what you can achieve. There is a lot of hype surrounding the commodities future market and many people believe that you can regularly make 100% returns every week or month. In reality, this is not the case.

Realistic Returns

While it is possible to occasionally make 100% in a month, this is not the norm. Professional commodity traders will call it a good year if they have made 20% for the entire year. Therefore, those that are just getting into the commodities market for the first time should not expect to be able to beat the returns that these professional money managers can make. Making money in the commodities market should be considered a slow and steady process, instead of a sprint to the finish line.

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