Just quietly it may be worth watching the Materials sector in the next few months. Big Caps such as BHP, RIO and some of the smaller ones such as S32 and FMG appear at this time to have all of their ducks lined up in a row.
Strong demand for the underlying commodities based on recent upgrades of global economic growth, continuing upturn in the relevant commodity cycles, and almost all of the Materials companies moving up on a continual basis from their lows last year.
Being in the markets for the last thirty years I see an upswing over the short to medium term.
The best leverage in my humble opinion is ASX Futures call options.
My pick was BHPSF9 (expiry 22.02.2018) that I heavily invested in in late December 2017. It has been a fantastic investment and I would just like to share it with anyone who has high risk, high reward sentiments.
This is not a ramp because the underlying price of these material stocks dictate the underlying option prices. As any short term investor knows it is very hard to manipulate the price of these large materials stocks because their share prices are based on sound economic principles and the vagaries of the market.
I have been trading both call and put options for over 20 years and enjoy the leverage one gets. You can loose all your money on one trade but you can sometimes have more than a ten bagger if you pick the right seasonality and sector cycle. Its a bit like going to an amusement park and deciding to go on only the most dangerous rides. You get the most entertainment out of them but they are only for the most seasoned of investors (no newbies under 3-5 years of investing experience should be allowed).
I have also been thinking that HC should have a derivatives section for those that delve into the futures market so it would be good to hear if anyone else is interested. Apologies for tying up the STT thread with this rant but it would be good to hear if there were any other futures traders out there hoping to share their wisdom with ilk minded traders.
Cheers Onaroll1
And as always DYOR and newbies beware of leverage like death.
