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I’ve noticed a lot of successful traders trade commodities versus equities. What makes commodities easier to trade? Ed Seykota has been doing it for decades:
by melling 7y ago
I’ve noticed a lot of successful traders trade commodities versus equities.
What makes commodities easier to trade?
Ed Seykota has been doing it for decades:
https://en.m.wikipedia.org/wiki/Ed_Seykota https://en.m.wikipedia.org/wiki/Ed_Seykota
- Kranar 7y agoCommodities are generally harder to trade compared to equities. The reason successful traders do it is because you get access to much greater leverage compared to equities.
- reverend_gonzo 7y agoLeverage. You’ll quickly get big or go home.
- JackFr 7y agoNo inside information on commodities. (However trading on embargoed government press releases is illegal. Though rather than kidnapping Clarence Beeks on the train, you can just interview the Florida farmers yourself.)
- Macross8299 7y agoThere is definitely inside information on commodities, it's just rare that insider trading on commodities is prosecuted. You would definitely have an advantage in trading oil/gas futures if you had access to ExxonMobil's seismic exploration reports, for example.
- boulos 7y agoIndeed! I found Matt Levine's post last Fall [1], particularly useful, as he believed you couldn't be prosecuted for insider trading of commodities (only securities). Then he received a nastygram from the CFTC :). [1] https://www.bloomberg.com/amp/opinion/articles/2018-10-24/it-s-hard-to-be-an-insider-in-oil https://www.bloomberg.com/amp/opinion/articles/2018-10-24/it...
- JackFr 7y agoWow. But if Matt Levine can get it wrong too I don’t feel so bad. But the insider trading you suggest above, is predicated on having material non public information of ExxonMobil’s.