I am sure you have seen those late night informercials how to make a million dollars in commodity futures trading. How about an option strategy buying heating oil in the summer because it has to go up in the winter. Well guess what, it does not work that way. Commodity futures trading is the hardest yet easiest thing to do. Too many think this is a get rich quick idea. Well, it is a quick rich slow idea, boring, aggravating at times and simply one has to have enough money to survive the most common choppy directionless markets. Only once in a while are there big moves, unexpected powerful ones. Where were the experts predicting the recent stock market crash( however trend following commodity trading advisors made a fortune). How about the experts who were calling for crude oil to go to $200 ( who knows it might..but again trend following commodity trading advisors made a fortune).
After being involved as an investor as well as a commodity trading advisor in commodity futures trading since 1994, I can tell you if you think to start trading with less than $100k you might be better off flushing it down the toilet. This is just my opinion, but as Ed Seykota a legendary trend follower has stated there is no dollar amount too big or too small. The key is following your system or staying with your commodity trading advisor during the eventual draw down. The volatility is so great in the markets currently if you do not have enough money in your futures trading account and you attempt to run a tight stop, just the noise can take you out.
In summation, there is no magic number… however in my first hand experience I would not even suggest with less than $100k
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