More fortunes are made and lost more quickly in the commodity futures markets than anywhere else. It is a game of consequence where profits won by one player are lost by another. The stakes are high, but for those who know how to play well, the rewards can be immense. Trading Commodities and Financial Futures shows you how to play the game to win.
In this book, one of the world's most experienced traders introduces a new step-by-step methodology built on more than twenty-five years of success. George Kleinman begins with the basics—including a complete primer on how futures and options trading works, how traders' psychology impacts the markets, and how to avoid the pitfalls that trip up so many traders.
This edition offers updated coverage of electronic trading, the latest contracts, and state-of-the-art trading techniques you won't find in any competing book. Previous editions of Kleinman's Commodity Futures and Options became international best sellers. This one offers even more insight for winning the commodities game—and winning big.
Winning in a zero-sum game
For every commodities winner, there's a loser: here's how to be the winner
The trend is your friend
How to use techniques designed to generate profits in a trending market
The fundamentals: supply and demand in every key market
Mastering the markets, from crude oil to soybeans, gold to coffee, foreign exchange to stock index futures
TMVTT: The most valuable technical tool
A unique trading methodology—how it works and how to use it
When to get in, when to get out
How to recognize the beginning—and end—of major market moves
Twenty-five trading secrets of the pros
A lifetime's experience, distilled into twenty-five crucial tips
1. Basic Training: A Futures Primer.
Futures markets and the futures contract.
It is as easy to sell short as to buy long.
Margin and leverage.
Brokers and commissions.
A hedging example.
The Exchange, 'open outcry' and the clearinghouse.
The regulators and regulations.
How to place an order.
2. The Intermediate Futures Trading Course.
Zero sum game.
Contrary opinion theory.
Spreads, straddles, and switches.
Normal or inverted?
The "Voice from the Tomb."
3. A diabolical story.
4. The Options Primer.
What is an option?
How options work.
5. Advanced Option Strategies.
Buying options to protect futures.
Writing options as a hedging strategy.
Covered option writing.
Straddles and strangles.
6. Eight Winning Option Trading Rules.
1. Stay away from deep in-the-money options.
2. Stay away from deep out-of-the-money options.
3. -Trade slightly out-of-the-money, at-the-money, or slightly
4. There is a time for all seasons.
5. Covered call writing is a good strategy for what appears to be a bullish environment, and covered put writing is generally good for what looks like the bear.
6. In "normal" markets, write straddles and strangles.
7. Look for opportunities to backspread.
8. Use options to hedge a profitable futures position.
7. How to Analyze the Markets Fundamentally.
Which is the best way to go?
8. The Advanced Futures Trading Course.
Does technical analysis really work?
Point and figure charts.
Japanese candlestick charts.
Spread trading-a valuable forecasting tool.
Why technical analysis makes sense.
9. The Most Valuable Technical Tool [TMVTT].
Bottom pickers versus trend followers.
A moving picture.
A moving average primer.
The simple moving average.
How many days should you use in your moving average?
10. How I use TMVTT.
Additional rules for maximum success.
11. Day Trader's Secrets.
Your nine essential day trader's rules.
The trend reversal day trading system.
12. Your 'State of Mind'.
Six hurdles to successful trading.
If you don't feel right, you won't trade right.
13. 25 Trading Secrets of the Pros.
14. Jesse's Secret.
The secret to making the big money is to maximize the big move.
Those who can be right and sit tight.