What do you guys think of buying futures contracts?
I went to a seminar today, at the Masonic club in sydney, and the guy presenting on futures was really compelling.
Oil, for example, seems a bit of a no brainer at the moment, with global uncertainty on supply etc, and China's thirst. Is that a naive pov?
Another scenario he painted, was buying into say, corn.
Each Nov I think it was, crops are being planted so price is high, then rises til harvest mid year, and price drops back down as supply balloons out again.
He said buy into the same period each year on the rise.
He indicated it was relatively simple to do just one trade on this commodity each year, at the same time, then spread this philosophy across other markets, for almost guaranteed success. I know there's no such thing, but there seemed to be merit in it.
I have never bought futures, but am starting to learn.
Who do I buy them through - I use Commsec now.
What do you have to be wary of, and are there any almost sure things.....