AYO: One of you money-minded niggas gimme a crash course on investing

[blakfyahking]

Nigga I'm referring to soft commodities agricultural products that are grown. salt, sugar, coffee beans, soybeans, rice, wheat. You're thinking hard commodities.

what's the difference?

a commodity is a commodity champ

there really isn't too much risk between in investing in metals vs. "soft" commodities.............never heard that term before

the average nigga is not a farmer, so why tell them to fuck with some shit they would have no use for if it was delivered to their doorstep?

I'm aware. I was just telling him different financial instruments. I said in the same sentence to avoid them.

I got you.

the way I read it, I thought you might have been implying something else.

I agree with what you said about derivatives, just wanted to make sure it was clear tho

there are a lot of derivatives out there, and it's easy too get them confused

 

[Sh0t]

Soft commodity is a term. It refers to things grown/raised. The perishable nature of such items gives them a certain present-bias.

I'm a fan of commodities, all types. Don't be scared of derivatives, either.

You can't have one investment strategy if you want to make money all the time. Different options are better at different types.

Expecting growth? Go long stocks/commodities, buy calls
Pessimistic? Learn to short, buy puts
Tons of volatility? Complex options

etc

What strategy you are using at any given time is dependent on the market. You have to take what the market gives you.

 

[blakfyahking]

Soft commodity is a term. It refers to things grown/raised. The perishable nature of such items gives them a certain present-bias.

I'm a fan of commodities, all types. Don't be scared of derivatives, either.

You can't have one investment strategy if you want to make money all the time. Different options are better at different types.

Expecting growth? Go long stocks/commodities, buy calls
Pessimistic? Learn to short, buy puts
Tons of volatility? Complex options

etc

What strategy you are using at any given time is dependent on the market. You have to take what the market gives you.

props for the bolded..........didn't know that

I don't know about "present-bias" tho................cause most "soft" commodities are traded with futures

so there is really nothing present about them

I think I might need to finished updating my investment related threads I used to drop in here to make sure mofos aren't passing out wrong info

where were all you investment minded cats before when we 1st started contributing to this forum section? LOL

a lot of jewel are in the threads on the older pages...............sion put out a lot of good info

 

[Sh0t]

props for the bolded..........didn't know that

I don't know about "present-bias" tho................cause most "soft" commodities are traded with futures

so there is really nothing present about them

The term "future" has nothing to do with the nature of the item, it's just a description of the contract: money now, delivery later. The opposite of "buy now, pay later". It originated from agricultural goods markets. Farmers like money during the winter, so they sell contracts for their crops in December and deliver "at a future date" the crops.

Futures contracts are the standardized, exchange listed way of doing this. These arrangements are also done outside of the exchanges(forwards).

The quality of the items, and the risk they might spoil or whatever is a major part of the price action in the forward market and futures exchanges.

 

[blakfyahking]

The term "future" has nothing to do with the nature of the item, it's just a description of the contract: money now, delivery later. The opposite of "buy now, pay later". It originated from agricultural goods markets. Farmers like money during the winter, so they sell contracts for their crops in December and deliver "at a future date" the crops.

Futures contracts are the standardized, exchange listed way of doing this. These arrangements are also done outside of the exchanges(forwards).

The quality of the items, and the risk they might spoil or whatever is a major part of the price action in the forward market and futures exchanges.

my yout, I understand what a futures contract is

spoilage isn't really an issue..................the prices are based on fluctuation in prices in the future (hence future being as an adjective to describe the contract)

people who deal in agricultural products, or use certain commodities as direct materials for their inventories use futures contracts to hedge against price fluctuations in the future, hence my argument about possible present bias

since futures contracts are standardized, there isn't really a concern about spoilage, because the market ensures that you will get the commodities you pay for

quaity is not an issue because they are commodities.................remember commodities are fungible

just like a barrel of oil is the same no matter where it comes from, so is a bushel of corn

the only issue you face is whether the price of the underlying commodity will go up or down by the time the futures contract expires..................and depending on whether you are long or short, you will have taken a loss or realized a gain

 

[lordhonka2]

I now the thread starter asked about investing. but why didnt anyone suggest getting in to options trading as a way getting started and getting used to the market. Options are risky but what about the market isnt especially now. I started when a friend put me on to it. I watch learned how to use candle sticks and read up on companies. to make sure i made good choices its short term but you can make some good money. I too would suggest you buy options investing for dummies and there is another book but i cant think of the name it just like options investing for dummies. Its like buy a scratch off and betting that it will hit or betting that it will lose and either way you can get paid