Is It Possible To Turn $400 Into $1000s by Commodity Trading?

I’ve always been fascinated by commodities trading. Commodities trading is one of those areas of trading where fortunes can be made or lost in minutes.

Unfortunately, I’ve never had very much risk capital that I could use to invest in commodities. But, I did know that by trading commodity options rather than futures contracts, that risk can be greatly limited.

Trading options can be a bit complicated though. Even though risk is limited in trading options to the amount paid for the option premium, there is a time factor in trading options that has to be contended with. An option has a specific expiration date and an option will expire worthless if the option’s strike price has not been reached by the expiration date. In fact, I’ve read that 80 percent of all options expired worthless.

Over the past couple of years I’ve tried to learn as much as I could about trading options. I took the Ken Roberts course and read some other books on the subject. Last summer I put $1000 into a trading account. I made a little bit of money on Oats, but then, I lost big on Orange Juice. I ended up with just

$577 left in my account.

Humbled by my experience in Orange Juice options, I decided to see if I could bring my account balance up by shrewd trading and not by having to put any more money in my account. Well, since May of 2006, I’ve actually completed two trades. My first trade was an October 2006 Sugar put option. After brokerage commissions, I made a profit of $206.73. The second trade was a December 2006 Corn call option. I ended up with a profit of $32.50 cents after brokers commissions on that trade.

I’ve certainly not made any big money trading, but I am learning a lot. Stay tuned to this blog and I’ll be discussing my newest trades and prospective trades. Also, if you want to read about my trades in greater detail, please visit my web site, www.mylearn2trade.com.