A lot of average people have become filthy rich through commodity trading. Trading commodity is known as one of few investment opportunities where individuals with limited capital can make astonishing returns of investment in a very short period of time.

From $1,600 to $200 million – in less than 10 years

Richard J. Dennis from Chicago is one of many successful commodity traders who started out with $1600, turning it into $200 million in not even 10 years. Obviously, everyone might not become as successful as him..

What about risk with commodity trading?

Since you can leverage your investments up to 200 times the initial deposit, money can quickly be made or swept away. Make sure to not treat commodity trading as a get rich quick scheme, using too much leverage or unbalanced trading strategies. Learn more in our commodity trading guide.

Commodity trading from an investment perspective

From an investment perspective, it is important to diversify your trading portfolio. When you buy commodities, you kind of hedge against inflation. At the same time, many commodities tend to be uncorrelated with equity (stocks and funds), so you get a much greater risk diversification.

Commodities from a trading perspective

From a trading perspective, you might find it very interesting to trade commodities since they tend to follow certain seasonal patterns. At the same time, it’s almost impossible to manupulate commodity prices, making it easier and more fair to trade it.