16 Mar

Isn’t trading commodities just pure gambling?

Every time I hear someone compare commodities to gambling, I think of Matt Damon’s character from the movie Rounders, in which he is talking about playing poker. At a high point in the film he says angrily to his girlfriend:

Why does this still seem like gambling to you? Why do you think the same five guys make it to the final table at the World Series of Poker every single year? What, are they the luckiest guys in Las Vegas?

It’s my favorite part of the movie. The character is finally confronted with having to tell his girlfriend the truth that he’s been playing poker again. It’s revealing in a couple of interesting ways. And they both line up to trading commodities.

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  1. Matt Damon’s character is right. “Big name players…have made millions of dollars over the courses of their careers. They show up time and time again at the final table of major events.” And there are a ton of other reasons to suggest that poker is not gambling as well. (Check out this article which explain more about the above quote and explains many other reasons.)

    The same is true of commodities. If it was just pure gambling, people wouldn’t be able to consistently make money trading commodities and “win at the game”. But people do it all the time! They work hard, look for the signs, and make money in trading commodities. People literally make a career out of this! A career they can spend at home or abroad!

  2. You can make a gamble of anything. How many times in our lives do we just put the money down without doing research and hope things turn out ok? Matt Damon’s character did this. He got lost and started gambling rather than sticking to his plan (hence the conflict with his girlfriend). Is it possible to throw money at the commodities market and just gamble? Absolutely. That’s how most people do it, in fact. But we think there’s a better way.

At papertrademe.com, we’re looking to take the gamble out of trading commodities. Go in with a proven plan, execute it, and win more times than not. Then, watch your account balance go up. Honestly, that’s the whole point of what we do! You can take your hard-earned money and throw it at a broker and hope everything turns out ok (talk about a gamble!), or you can paper trade, save your money, and practice until you get it right! Then, when you’re ready to make that first real trade with a broker, it won’t be a gamble, it will be a proven plan that will win over the long term.

Is there risk in trading commodities. Absolutely! But those risks can be mitigated.
Just look at your own life today:

  • Are there risks in driving a car? Absolutely! Wear a seatbelt.
  • Are there risks in your job stability? Absolutely! Learn new skills.
  • Are there risks to your health? Absolutely! Don’t drink too much. Eat right.

There are risks in commodities. But those risks can be lowered by planning.

So, is trading commodities pure and simple gambling? No, it’s not. And just like anything else in life, there is a smart way to do things and a foolish way. We want to help you do the smart thing.

Join papertrademe.com today! Sign up here: http://papertrademe.com/signup/

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