Five Pitfalls of Trading Commodities

Trading commodities can be a treacherous business.

So if the boom in materials prices has you itching to jump in, there are some important pitfalls to avoid if you don't want to go bust.

For most would-be commodities traders, the first stop will be a look at futures and options contracts like those traded on the Chicago Board of Trade, the Chicago Mercantile Exchange(CME Quote) or the Nymex(NMX Quote).

Although the trading looks similar to that on the NYSE Euronext(NYX Quote) it isn't. ...