In their quest for trading commodities profitably, beginning traders spend a substantial amount of time studying market theory, various types of market analysis, and paper-trading in the futures and options markets. Yet, almost all of them fail to take the necessary steps to ensure their trading environment is conducive for the profits they seek. A Trader’s First Book on Commodities aims to fill the void in trading literature that overlooks the importance in making the right decisions before ever placing a commodity trade such as fully understanding market mechanics and logistics, choosing a proper trading platform, understanding order types, being aware of market data fees and policies, how to quote and calculate profit or loss in each of the commodity markets, preparing for margin calls, and the only magic in trading–humility.
A Trader’s First Book on Commodities is guaranteed to shorten the learning curve for beginning traders while offering seasoned traders a new perspective on familiar topics. There is more to trading than computer-generated oscillators and trendlines; choosing the wrong trading platform, brokerage, or order type can do more harm to a trading account than choosing the wrong technical indicator.
This book generally places in the top 10 to 20 of its genre on Amazon (sometimes higher, sometimes lower).
“There is no tool to change human nature … people are prone to recurring bouts of optimism and pessimism that manifest themselves from time to time in the buildup or cessation of speculative excesses.” — Alan Greenspan
Witnessing the grain complex shatter all-time-high price records and continue to climb in the now-infamous 2007–2008 commodity rally was nothing less than breathtaking. However, by late 2008, the party had ended. Many retail traders and fund managers watched in horror as the grains and energy markets made their way relentlessly lower in sympathy to the notorious financial crisis. The selling pressure and losses in the commodity markets during this time were so profound that hedge fund managers experienced unprecedented numbers of redemption requests; the associated liquidation added fuel to the already raging fire. Investors in all corners of the market, with the exception of US Treasuries and gold, were in full risk-off mode. Ironically, the same asset class that investors swarmed to for “diversification” from stocks in the early 2000s played a role in the demise of equities during the 2008–2009 bear market; margin calls in commodity accounts were met via stock liquidation and vice versa.
We now know that this boom-and-bust cycle was destined to be repeated, although in slightly less dramatic fashion. Commodity markets such as the grains, energies, and meats soared between 2010 and 2015, but fast forward to 2016 and the complex was in a crisis of its own. Perhaps a feast-or-famine trade is a new reality: high margins, high risk, high reward, and even higher adrenaline rushes.
| Language | Status |
|---|---|
|
German
|
Already translated.
Translated by John Wannecke
|
|
|
Author review: John is hardworking and honest. I enjoyed working with him on this project. |
