Re: trading/investing in commodities - why do/have people prefer equit
Commodities can be very profitable and deserve a place in any diversified portfolio. Most people see them as higher risk and more volatile. They are not. Only the mis-use of their leverage makes them appear more risky.
Many commodity contracts are less risky than individual stocks (pound for pound). You just need to employ proper money management and position sizing relative to your account.
Commodities are better suited to medium/long term trading due to their trendiness. Their is less 'noise' in commodities' prices and the trends are more pure and last longer. This makes them more suitable for a trend-following strategy.
They also are uncorrolated (on the whole) to stocks.
Most people however, don't have an account large enough in which to safely trade/invest in commodities. That's why so many people go bust trading them.
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