Ken Roberts was a one-hit wonder in the realm of Commodities Markets investing. He put together enough money to cover as many futures contracts in sugar as he could back in time when sugar was selling worldwide for 2 and 1/2 cents per pound. According to Ken, how could you lose. He reasoned that the price of sugar couldn’t go to zero and I assume that financial contracts in the Commodities Markets cannot change the basic volume units otherwise sugar or any other commodity could go to 2 and 1/2 cents for 10 pounds. But be this as it may Ken Roberts was very lucky and the price of sugar soared. Leverage in the Commodities Markets is an awesome way of investing and there are sure-fire no risk ways to do it but NOT the Ken Roberts way.
Roberts wrote a commodities investment manual I have heard likened to a 3rd graders primer. It contained one basic philosophy on chart formation which is never always true and based all of his invitation to the markets for the average person on that. Roberts discussed THE RISKIEST things one could do in commodities markets investing with such ease that many people who jumped into the markets based on Roberts enthusiasm sank in debt.
Fundamentally in order to correct some of the misinformation about the Commodities Markets espoused by Roberts I must say NEVER enter a futures contract. For one thing there is never any need to. For another thing the risk cannot be contained by any means. A third reason is that Commodity options exist now for the investor which are risk-free once you buy them and can profit even more than contracts. And there are other reasons which mean that you can accomplish the same thing risk free in investing gaining the advantage of leverage offered by contracts for sums of money a paperboy could afford.
Ken Roberts finally crashed and burned like any candle lit at both ends. Roberts contradicted every piece of advice he offered and sold out his following of thousands before they understood his madness and revolted. I have no animosity for the man. He believed he was doing good and being a friend. He spoke of spirituality but he loved wealth more and so it is right that he folded his empire.
The disinformation to the thousands of Ken Roberts course members cannot be disclaimed though. I was a loyal course member for over 6 years before gravitating to the teachings of a very learned spiritual man by the name of Guy Finley. Having completed my studies of both men I am going to enter my own consulting business possibly writing my own Commodities Markets investment courses and hope that others who invested under the false misconceptions Roberts left behind do not find themselves penniless and in debt.