Stock Market Commodities Trading Basics
So what are the stock market commodities trading basics?
Commodities are items such as crops, livestock, minerals, and oil. Basically any unprocessed or partially processed good. Investing in commodities is very risky. Many things can influence the prices of commodities both good and bad.
As an example, a hurricane could potentially wipe out a crop raising the cost of that crop. This means that commodities are considered to be speculative stocks in nature, because of the guess work involved in how much an event may or may not influence the price of a stock.
Many investors, including Warren Buffett, will stay away from stocks that rely almost completely on any one particular commodity.
- Oil ETFs