Discussion in 'Trading' started by drukes1234, Apr 22, 2008.
What stock would be the best play to participate in the rise in Soybean prices?
One of the benefits of investing in commodities is you know some overnight news isn't going to plop the stock to zero. The eft DBA tracks a basket of ags (see etfconnect.com ) and provides an alternative to futures/options trading.
Another way to invest in commods is thru spreads, via The Encylopedia of Comomodity and Financial Spreads. The book is an anthology of computer selected high-probability spreads (~90% hit ratio). It details each spread with graphs/stats and summarizes the best year's trades with a chronological summary.
Another must for commodity trading is The Commodity Traders Almanac. The chart in there shows a seasonal drop in May, so be careful.
Another great tool: