We’ve been so caught up watching stocks soar we haven’t paid much attention to one of our favorite asset classes: commodities. Yesterday, we mentioned we were bullish on agriculture. In particular, we like the PowerShares DB Agriculture ETF (NYSE:DBA). Underground investor Jim Rogers is also bullish on agriculture. He says Asian demand and low inventories will lead to a long secular bull market in corn, soybeans and fertilizer. As Brian Hunt wrote in yesterday’s DailyWealth, DBA “is one of the largest and most liquid ways to trade agriculture through the stock market. It divides its holdings evenly between corn, soybeans, wheat, and sugar.”

From this chart, you can see that DBA is has been showing some strongly bullish action lately. And it has the Jim Rogers seal of approval.

There’s one investing rule more important than all others. It has nothing to do with stock picking or market timing. Although about 95% of all investment commentary in the mainstream media deals with these two aspects of investing, you’d be surprised how little these actually matter.

Position sizing is what matters, says Brian Hunt, editor in chief of Stansberry Research in yesterday’s Growth Stock Wire. Trading psychologist Dr Van Tharp says its how “great traders manage their money.”

Smart position sizing is easy: never risk more than 2% of your capital on any one trade.

That’s it. We told you it wasn’t complicated. But would be surprised how few traders and investors actually follow this rule.

Here’s how it works. Take it away, Brian…

Let’s say you’re a trader with a $50,000 “grubstake.” And you’re thinking about buying Intel at $20 per share.

How many shares should you buy? Buy too much and

April 6, 2009

Why the economy is still heading for a cliff… All the king’s horses and all the king’s men can’t put the banks back together again… The madness of Sheila Bair… The government lies over banks are paper thin… Infighting at the Treasury… Why Citi’s CEO should go… Banks plunge… “Fake dividend” strategy exposed… Can mark-to-model save them? Selling OTM calls against your financial stocks… What happened on March 9… And more!

*** You’re reading this newsletter because you don’t believe the cheerleaders in Washington and in the mainstream press. You know it’s safer to know the truth about the economy than to believe the hype and the lies and the false optimism. You know that real money-making ideas can’t be found on CNN and

Tuesday, March 31, 2009Recoleta, Buenos Aires, Argentina

Team Obama talks bankruptcy… But he doesn’t really mean it… Politics continue to drive the economy… The most ruinous CEO in history… Deutsche Bank: This crisis is “far from over”… Bailouts reach $10.5 trillion and counting… Gold is where the smart money is right now… Money supply increases… And more!

*** Is Team Obama finally coming to its senses? Instead of keeping the fatally wounded U.S. auto industry on a drip feed of tax dollars, Obama is considering allowing GM and Chrysler to enter bankruptcy.

A headline in the WSJ reads “U.S. Threatens Bankruptcy for GM, Chrysler.” How backwards has the U.S. economy become when bankruptcy for a failed company is seen as government intervention? In a functioning economy companies go into bankruptcy when they fail. It’s just a