Commodity market trading - However, it must not be forgotten that quite a large amount of money was involved, and even an investment professional would not be eager to take the responsibility for deciding that any particular moment might be the appropriate time to invest $159 million.

Then too, the council members were in positions of public responsibility, and were thus doubly on the spot. The idea of dollar averaging is to purchase the same dollar amount of a stock or stocks at regular intervals"monthly, quarterly or annually. Naturally, the method is especially appealing to small investors, who perhaps would not be able to buy stocks any other way, and it has been publicized primarily by the New York Stock Exchange in connection with its Monthly Investment Plan, and by mutual fund marketing organizations. Buying stock at regular intervals seems a completely practical and relatively painless way of accumulating a sizable account. More important, however, the automatic result of buying a fixed dollar amount of stocks at each purchase point"instead of, say, a fixed number of shares"is that more shares are bought at low points, and fewer at high points. By increasing the number of shares purchased when prices are low, and cutting down as prices rise, the investor is constantly working to reduce his average cost, so that the average cost of shares purchased is always lower than the average of the prices paid.

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