If you want build wealth quickly there is a simple way of doing it Buy copper as long term investment, forget gold and silver this is the one metal that builds wealth.
Last week in our hot commodities section we looked at it and it piled up huge gains, more than most fund mangers make in a year and it can make you lot of money here’s why:
Big Long term gains
Triple digit gains are on the cards in the coming year and past performance is fantastic, prices have increased more than six-fold since the latter part of 2001.
Global demand is on the move
This price rise has been driven by strong demand from global economic demand and tight supply The long term trend is still up!
Copper is up over 50% this tear alone supported by historically low stockpiles and very tight supply trying to keep up with ever expanding demand.
This is a simple investment
You investing in a raw commodity that may swing in the short term but long and short term trends are up and have been for years.
Many traders think it’s too simple just to buy and hold, but this commodity is one that all speculators looking for large gains should focus on.
While the focus has been on more glamorous metals such as gold or silver copper has quietly piled up bigger gains – far bigger gains
The technical view.
If we look at the technical picture, we can see the huge potential.
The weekly & monthly chart
Here we can see the long term trends on both the weekly and monthly charts are firmly up.
The daily chart
The daily chart is up and support is at the mid Bollinger band, traders can also buy a clear break of the highs. Be patient to time entry with best risk reward.
You can trade the market in the following ways
The most risky and lucrative way timing has to be very precise or you need a wide stop
For unlimited profit potential linked with limited risk. Buy at, near, or in the money options with lots of time value to expiry, that will help you cope with short term volatility
3. Intra market spreads.
This involves buying and selling contracts in the same commodity.
Buying the nearby and sell a deferred (you need to look at direction of the spread though before trading) again provide staying power and lower margins.
Is it really that simple?
Yes, this is simple trade but to get leverage to work for you, trade only when the risk reward looks good for entry you can then sit back and enjoy the ride.
Many traders have ignored copper as a way of building wealth but on past performance and future prospects it’s a great horse to be on to pile up some great triple digit annual long term gains
How to trade copper
If you want to know how to trade copper get a free special situation FREE Commodity newsletter
which has just added , metals to energies and currencies and is designed to alert you to the big profits from the big moves. You can also get 100 page FREE Trader CD
packed with tips and strategies to help you become a better and more profitable trader at http://www.wellingtoncr.com