FUTURES SHOCK
        
              I love talk radio.  Whenever I am on the road, I listen to
        whatever station that has some interesting program on the air. 
        There is so much to learn.  
              Yes, I even listen to Rush Limbaugh.  Some might say that
        Rush is just a windbag, egomaniac who loves to strut his stuff. 
        Some of that may be true, and yet, he does present an alternative
        to the status quo.
              A few weeks ago while riding to Pittsburgh, I tuned into an
        interesting discussion about futures trading.  I won't name the
        company because this is not an advertisement for anybody. 
        Anyway, the host and guest were discussing the purchasing of
        heating oil futures.  The guest believed the value of heating oil
        futures would increase by more than 40 cents per gallon in the
        next three months.  He cited a 14 year study to prove it. 
              The guest described the concept of futures trading and how
        there was beaucoup money to be made if a person who has some
        spare cash lying around wants to invest it.
              Here's how it works.  The investor calls the company and
        buys so many shares of futures stock.  In this case, the investor
        buys 10 shares of heating oil futures at $1000 a share for a
        total investment of $10,000 plus $295 per share for
        administration services or $11,400 total investment.
              If the current value per gallon of heating oil is .49 cents,
        and it increases to say .50 in the next month, the value of the
        futures stock held by the investor increases by .01 penny per
        gallon.  Now, since the original investment was $10,000 or
        translated into gallons, 42,000, the rise in the cost of heating
        oil by one good American copper penny nets the investor $4,200.
              Now wait a minute.  Can that be true?  Yes, according to the
        way the futures market works.  If heating oil purchased in
        December, 1994, for .49 cents would sell for .59 cents in
        February, the gross profit for the investor would be 10 times
        $4,200 or $42,000.  
              This is the magic of futures investing.  A small amount of
        money can become a large amount in a very short time.  There are
        risks, however.  Natch!  If the value of the fuel oil dropped
        from .49 to .45 in February, the entire investment would be lost. 
        This is the danger in futures trading.  
              Naturally, the futures trading company doesn't want to lose
        money for its investors because they would soon be out of
        business.  Their goal is to make money for the investor and for
        themselves.
              After hearing all of this, I called the company on their 800
        number and requested an information package.  They were very
        helpful and not too pushy.  This surprised me.  
              I received the package on November 24, and studied it.  I
        was tempted to buy in.  Then on December 1, 1993, I heard a
        report that the OPEC nations decided to continue producing oil at
        the current rate.  The price of a barrel of crude oil dropped
        from $21 to $15 the same day.  I got the jitters.  If crude oil
        dropped in value, it seemed only reasonable that the price for
        heating oil would too.
              For days I wondered whether to make the investment.  I
        received three calls from the futures trading company
        salesperson.  He was nice and didn't pressure me.  I told him the
        $10,000 was a big chunk of change.  It was then he told me that I
        could invest as little as $3000.  That sounded tempting to me,
        but I still wasn't sure.  There was no mention of $3000
        investments on the talk show.
              The winter temperatures for most of December were mild.  I
        wondered what to do considering the weather and the OPEC
        production.  I received a few more calls from the salesperson. 
        No pressure or anything, but there was a tinge of impatience in
        his voice.  
              When all three of our vehicles went down in one week during
        Christmas break, I knew it was foolish to consider investing even
        $3000 in heating oil futures.  I didn't have a car to drive for
        over a week and I was considering investing a bundle of cash in
        heating oil.  I decided not to invest.
              Yet, there are those who do make a living gambling on such
        commodities.  Actually, the odds are much better in the futures
        market than they are in playing the daily lottery.  A few years
        ago when Cuba experienced two hurricanes in one growing season,
        the cost of sugar futures went from .05 cents to .95.  Those who
        invested in sugar futures that year made a killing.  
              There are many commodities out there which are staples of
        our lifestyle, like sugar and heating oil.  Some people with
        spare cash will continue to invest and make money.  There is
        risk.  There is excitement.  There is the potential of amassing
        great wealth.  There is also the chance of substantial loss.  
              I still am considering an investment some time in the
        future.  Today, I spent $90 bucks to get new wheel bearings for
        my 15 year old car.  
              Next, I plan to get my car radio fixed.  Who knows what
        valuable pieces of information I am missing because I can't
        receive any local AM or FM channels?